ABC trades for $30, has current earnings of $4, current dividends of $2, and a beta of 1.2. The risk-free rate is 6% and the market risk premium is 5%. What is the ROE implied by the DDM? ROE = ___% (answer the closest integer, without % sign)
ABC trades for $30, has current earnings of $4, current dividends of $2, and a beta of 1.2. The risk-free rate is 6% and the market risk premium is 5%. What is the ROE implied by the DDM? ROE = ___% (answer the closest integer, without % sign)
ABC trades for $30, has current earnings of $4, current dividends of $2, and a beta of 1.2. The risk-free rate is 6% and the market risk premium is 5%. What is the ROE implied by the DDM? ROE = ___% (answer the closest integer, without % sign)
ABC trades for $30, has current earnings of $4, current dividends of $2, and a beta of 1.2. The risk-free rate is 6% and the market risk premium is 5%.
What is the ROE implied by the DDM?
ROE = ___% (answer the closest integer, without % sign)
Definition Definition Quantifiable approach used to anticipate the stock price of a company by discounting all of its future dividend payments. According to this model, the present value of the stock is worth the sum of discounted future dividend payments and the intrinsic value of the stock.
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