Question
Timco has paid 3.50 per share to the preferred shareholders each year for the past 20 years. We believe this will continue forever. Timco has
Timco has paid 3.50 per share to the preferred shareholders each year for the past 20 years. We believe this will continue forever. Timco has a beta of 1.6, the risk free rate is 2% and the market is expected to earn 11%. What would be a fair price for the Timco stock?
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Quantitative Investment Analysis
Authors: Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, David E. Runkle
3rd edition
111910422X, 978-1119104544, 1119104548, 978-1119104223
