The company reported earnings per share of $3.5 for the just completed fiscal year (t=0). The firm is in stable growth, with an expected stable grow rate of 3.4% per year and a payout ratio of 60% in perpetuity. The firm's cost of equity is 6%. 

Required:

To estimate company's current equity value per share.

Answer rating: 100% (QA)

To estimate the companys current equity value per share we can use the Gordon Growth Model ... View the full answer