Question: 1. As a stock analyst, you will be using a holding period method on NVDIA stock, with fair value being represented by PEG equal
1. As a stock analyst, you will be using a holding period method on NVDIA stock, with fair value being represented by PEG equal to 1. NVDIA's EPS was $30 last year and you expect the growth in EPS to be 40% per year for the next few years. NVDIA has a beta-2, the expected return on the Market is 10%, and the T-bond is yielding 5%. (a). Establish the 12-month target price for NVDIA. (b). Establish the fair price for NVDIA.
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