For question 2.3

Do I buy the stock or do not buy? Im not sure if i go by Walmarts pe ratio (23.83) being greater than industry average 20 (buy) or go by $100 being less than 119.83 (do not buy)

walmarts pe ratio is 23.83

2. Use the following three methods to determine if you will purchase this stock at current market price. Assume market interest rate (r) as 12%, constant dividend growth rate (g) as 10%, and industry average P/E ratio as 20 times (1) True value method (Gordon dividend valuation model) TV-DO(119) = 212(1+30%) = $116.6 TV ($116.6)