Question
You require a return of 15.0% on astock. You expect next year's EPS (EPS1) to be $2.89 and a dividend payout ratio of 0.7. The
You require a return of 15.0% on astock. You expect next year's EPS (EPS1) to be $2.89 and a dividend payout ratio of 0.7. The company will reinvest the remainder of earnings in projects with expected return of 10%. What is a fair price for the stock today? Round your answer to the nearest penny.
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Handbook Of The Fundamentals Of Financial Decision Making
Authors: Leonard C MacLean, William T Ziemba
1st Edition
9814417343, 978-9814417341
