A research study has stated that the rate of return of XYZ Company due to capital appreciation
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A research study has stated that the rate of return of XYZ Company due to capital appreciation and dividend after making adjustment for the outflow of income is 16.27% for the period 2003-2008. The return is expected to grow at this rate for another four years. The recent dividend paid by the company to its stockholders is $.4 and the earnings per share on 10/2008 was $.35 and P/E was 4.8. If an investor wants to buy and hold the XYZ stock for another four years, what would be the ideal price if his required rate of return is 20%. The price was $167 as on 14/10/2008.
Related Book For
Principles of Auditing and Other Assurance Services
ISBN: 978-0078025617
19th edition
Authors: Ray Whittington, Kurt Pany
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