4. You call your broker and find that Intel is currently selling for $50 per share and pays $0.16 per year in dividends. The analyst on Wall Street Week predicts that the stock will be selling for $60 in one year. Assume that after careful consideration you decide that you would be satisfied to earn 12% on the investment. Should you buy this stock?

6. Find the current market price of Coca-Cola stock assuming dividends grow at a constant rate of 10.95%, D0 = $1.00, and the required return is 13%.

8. The average industry PE ratio for restaurants similar to Applebee’s, a pub restaurant chain, is 23. What is the current price of Applebee’s if earnings per share are projected to be $1.13?

Answer rating: 100% (QA)

4 Yes because my motive is to earn 12 profit Here by investing in thi... View the full answer