13. NFTSAUS corporation with a beta of 2.1 just paid a dividend of $1.80. The risk-free rate is 0.5% and the expected market return is 5.50%. Your growth analysts have concluded that the growth rate earnings per share and dividends will be 7.0% per year for the next three years and 2.50% per year thereafter. Calculate the value per share of NFTSHUS stock using a portfolio of Gordon growth models as described in class.
13. NFTSAUS corporation with a beta of 2.1 just paid a dividend of $1.80. The risk-free rate is 0.5% and the expected market return is 5.50%. Your growth analysts have concluded that the growth rate earnings per share and dividends will be 7.0% per year for the next three years and 2.50% per year thereafter. Calculate the value per share of NFTSHUS stock using a portfolio of Gordon growth models as described in class.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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