An analyst gathered the following data about a company: A historical dividend payout ratio of...

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An analyst gathered the following data about a company: • A historical dividend payout ratio of 40% that is projected to continue into the future. • A sustainable return on equity of 10%. A beta of 1.3. The nominal risk-free rate is 5%. . The expected market return is 10%. If next year's EPS is $2.15 per share, what should be estimated price for this stock? $ An analyst gathered the following data about a company: • A historical dividend payout ratio of 40% that is projected to continue into the future. • A sustainable return on equity of 10%. A beta of 1.3. The nominal risk-free rate is 5%. . The expected market return is 10%. If next year's EPS is $2.15 per share, what should be estimated price for this stock? $

Answer rating: 100% (QA)

Given that the company has a historical dividend payout ratio of 40 calculate the expected div... View the full answer