Question
You are required to analyze the following situation and give your recommendation on what is the best decision of action for the stock. PQR stock
You are required to analyze the following situation and give your recommendation on what is the best decision of action for the stock.
PQR stock currently has a market price of RM3.50. The P/E ratio is 12 with a price to book value of 1.5. The ROE of the company is 8%. Next year the company is expected to generate an EPS of RM0.35 and the expected DPS is RM0.20. The Book Value per Share is expected to be RM3.5. The companys Beta is 0.6 while the expected return for the stock market is 12% and the risk-free rate is 3%.
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Public Finance In Canada
Authors: Harvey S. Rosen, Ted Gayer, Jean-Francois Wen, Tracy Snoddon
5th Canadian Edition
1259030776, 978-1259030772
