Question
. The Digital Electronic Quotation System (DEQS) Corporation pays no cash dividends currently and is not expected to for the next five years. Its latest
. The Digital Electronic Quotation System (DEQS) Corporation pays no cash dividends currently and is not expected to for the next five years. Its latest EPS was $19.50, all of which was reinvested in the company. The firms expected ROE for the next five years is 15% per year, and during this time it is expected to continue to reinvest all of its earnings. DEQSs Price Earnings Ratio is 5 and its market capitalization rate is 26% per year. At the beginning of Year 2, DEQSs market price is $ 150 per share. Is this stock a better long purchase for your portfolio or a sale or a short ?? AND WHY ?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started