Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are a hedge fund manager and did some research about Walmart. Using alternative data and regression analysis, you find a relationship as follows: earnings

image text in transcribed
You are a hedge fund manager and did some research about Walmart. Using alternative data and regression analysis, you find a relationship as follows: earnings growth =0.110.7 parking vacancy rate. Based on some asset pricing models, your estimate of expected return on the Walmart stock is 8%. The current earnings per share of Walmart is $5. The average payout rate 16%. The average parking vacancy rate at a typical Walmart center is 5%. The current market price of Walmart is $180 per share. Based on the Gordon growth model, what is your estimate of the fair price of Walmart

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

How To Analyse Bank Financial Statements

Authors: Thomas Padberg

1st Edition

0857195182, 978-0857195180

More Books

Students also viewed these Finance questions

Question

What is RAM as far as telecommunication is concerned?

Answered: 1 week ago

Question

Question 1: What is reproductive system? Question 2: What is Semen?

Answered: 1 week ago

Question

Describe the sources of long term financing.

Answered: 1 week ago

Question

Influences on Nonverbal Communication?

Answered: 1 week ago