Question
The Maclures consider themselves to be value-oriented investors and are always looking for bargains in the market. They are considering making some additions to their
The Maclures consider themselves to be value-oriented investors and are always looking for bargains in the market. They are considering making some additions to their portfolio from the following list of securities (assume that all are only mildly correlated with their current holdings). Use the information in the table below to estimate the value of each companys shares. Based on your analysis, which stock (or stocks) would be recommended for purchase?
| Stock A | Stock B | Stock C | Stock D | Stock E |
Current Price | $60.00 | $25.75 | $145.00 | $9.35 | $89.50 |
Current Dividend | $2.00 | $1.85 | $3.56 | $0.80 | $3.68 |
Dividend Yield | 3.33% | 7.18% | 2.46% | 8.56% | 4.11% |
Dividend Growth Rate | 4.00% | 3.50% | 5.20% | 2.50% | 3.75% |
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