Stock A has an earnings of $5 per share at year 1. The interest rate is 20%,
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Stock A has an earnings of $5 per share at year 1. The interest rate is 20%, and the return on equity is 25%. If there is no plow-back and you like to buy stock A now and hold it for two years, what is the expected return for your investment ?
Stock A has an earnings of $5 per share at year 1. The interest rate is 20%, and the return on equity is 25%. If there is a plow-back of 40%, what is the earnings per share at year two (EPS2) ?
Stock A pays a dividend of $3 per share every year. The discount rate is 10% and the return on equity is 25%. If you want to buy stock A at year 1 and hold it for 5 years, what is the price you have to pay at year 1 (P1)?
Related Book For
Fundamentals of Investments, Valuation and Management
ISBN: 978-1259720697
8th edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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