What are the difficulties in using the PE ratio to value stock?
Answer to relevant QuestionsThe next dividend payment by Blue Cheese, Inc., will be $1.89 per share. The dividends are anticipated to maintain a growth rate of 5 percent forever. If the stock currently sells for $38 per share, what is the required ...Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of $2.65 next year. The growth rate in dividends for all three companies is 5 percent. The required return for each company’s stock is 8 percent, 11 ...Feeback Corporation stock currently sells for $64 per share. The market requires a return of 11 percent on the firm’s stock. If the company maintains a constant 4.5 percent growth rate in dividends, what was the most ...Given that IDT Corporation was up by about 429 percent for 2010, why didn’t all investors hold this stock?Assuming that the returns from holding small company stocks are normally distributed, what is the approximate probability that your money will double in value in a single year? What about triple in value?
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