Question
The earnings per share of Erratic Corporation are projected to be as follows: End of Year Earnings 1 $1.10 2 $1.15 3 $1.18 4 $1.20
The earnings per share of Erratic Corporation are projected to be as follows:
End of Year Earnings 1 $1.10 2 $1.15 3 $1.18 4 $1.20
After year 4, earnings are expected to grow at a constant rate of 6% indefinitely. If the required rate of return is 12%, what would you estimate the value of Erratic's stock to be? Round your answer to the nearest dollar.
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Financial Statement Analysis & Dividend Investing
Authors: Andrew P.C.
1st Edition
1075873940, 978-1075873942
