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Use the following information to estimate the value of the S&P 500: The most recent Earnings per Share: $150 Earnings Growth Rate: 3% 10-year U.S.

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Use the following information to estimate the value of the S&P 500: The most recent Earnings per Share: $150 Earnings Growth Rate: 3% 10-year U.S. Treasury Bond Rate: 1.5% Equity Market Risk Premium: 6.5% Return on Equity: 9% 5. What is the Cost of Equity? 6. What is the expected dividend next year? 7. Bas on our fundamental calculations, what should the value of the S&P be? 8. If the S&P 500 is trading at 2,000, is it correctly/over/undervalued

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