Since 2014, Abercrombie & Fitch (NYSE: ANF) has been paying annual dividends of $0.80 per share. Assume ANF has a cost of equity capital of 5.62%. The stock has recently traded around $15.35 per share. Assuming the dividend will continue to stay at $0.80 per share on a continuing basis, what is the estimated value per share for ANF?

Answer rating: 100% (QA)

Using the Gordon Growth Model Estimated Value per Share Dividend pe... View the full answer