You buy a stock which has the following features: Price:500 EPS: 33.3 Payout ratio: 25% Projected EPS
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Question:
EPS: ϵ33.3
Payout ratio: 25%
Projected EPS growth: 15%
What will EPS have to be equal to in year 3 for you to get a 12% return on your investment? What will the share be worth then?
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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