X-Ray Inc. recently paid its annual dividend of $4.4, and reported an ROE of 7%. The firm pays out 50% of earnings as dividends. Based on your analysis, you estimate that the stock has a required return of 9%. What is the intrinsic value of this stock? DO NOT ENTER THE $ SIGN. ALSO, ENTER YOUR ANSWER AS A POSITIVE NUMBER. SET YOUR CALCULATOR TO 4 DECIMAL PLACES AND ROUND TO TWO DECIMAL PLACES AT THE END, i.e. IF YOUR ANSWER IS 33.4348 ENTER IT AS 33.48 ONLY
X-Ray Inc. recently paid its annual dividend of $4.4, and reported an ROE of 7%. The firm pays out 50% of earnings as dividends. Based on your analysis, you estimate that the stock has a required return of 9%. What is the intrinsic value of this stock? DO NOT ENTER THE $ SIGN. ALSO, ENTER YOUR ANSWER AS A POSITIVE NUMBER. SET YOUR CALCULATOR TO 4 DECIMAL PLACES AND ROUND TO TWO DECIMAL PLACES AT THE END, i.e. IF YOUR ANSWER IS 33.4348 ENTER IT AS 33.48 ONLY
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
Problem 1PS
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Transcribed Image Text:X-Ray Inc. recently paid its annual dividend of $4.4, and reported an ROE of 7%. The firm pays out 50%
of earnings as dividends. Based on your analysis, you estimate that the stock has a required return of
9%. What is the intrinsic value of this stock? DO NOT ENTER THE $ SIGN. ALSO, ENTER YOUR
ANSWER AS A POSITIVE NUMBER. SET YOUR CALCULATOR TO 4 DECIMAL PLACES AND ROUND
TO TWO DECIMAL PLACES AT THE END, i.e. IF YOUR ANSWER IS 33.4348 ENTER IT AS 33.48 ONLY
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