2. The stock price for Parkside Industries is currently $88.75. The company's PE ratio is expected...

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2. The stock price for Parkside Industries is currently $88.75. The company's PE ratio is expected to remain between 10 and 12 for the next five years. The current dividend is $4.28 per share annually and is expected to grow at 5% over the next five years. The current EPS is $6.47 and is expected to grow 2.5% over the next five years. The company's required return is 12.5%. Estimate the PV of the company's stock price and its dividends and determine the company's current value per share. Based on this information and your estimate of value, is the company over or under-valued? 2. The stock price for Parkside Industries is currently $88.75. The company's PE ratio is expected to remain between 10 and 12 for the next five years. The current dividend is $4.28 per share annually and is expected to grow at 5% over the next five years. The current EPS is $6.47 and is expected to grow 2.5% over the next five years. The company's required return is 12.5%. Estimate the PV of the company's stock price and its dividends and determine the company's current value per share. Based on this information and your estimate of value, is the company over or under-valued?

Answer rating: 100% (QA)

Parkside Industries Valuation We cant directly calculate the present value PV of the stock price and ... View the full answer