A company earned $6.20 per share during the year that just ended and earnings should grow 3.8% per year into the future. The company has a beta of 1.10. The risk-free rate is 2.90% and the risk premium is 6%. The company has an ROE of 13.5%. What is the stock worth?

Answer rating: 100% (QA)

To determine the stocks worth we can use the Gordon Growth Model also known as the Dividend Discount ... View the full answer