Question
Use the constant growth dividend discount model and consider the following: ABC stock is expected to have earnings of $6/share next year. The stock as
Use the constant growth dividend discount model and consider the following: ABC stock is expected to have earnings of $6/share next year. The stock as a market capitalization rate of 10%. If the firm has an ROE a 14% in a plowback ratio of 0.4, what is the present value of the growth opportunities growth opportunities?
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Introduction To Mathematical Finance Discrete Time Models
Authors: Stanley R. Pliska
1st Edition
1557869456, 9781557869456
