CORPORATE FINANCE - LL+CONNECT ACCESS
CORPORATE FINANCE - LL+CONNECT ACCESS
12th Edition
ISBN: 9781264054961
Author: Ross
Publisher: MCG
Question
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Chapter 9, Problem 26QAP

A

Summary Introduction

Adequate information:

  EPS=$3.47Benchmark PE = 19Earnings expected growth rate = 6% per year

To compute: Estimate the current stock price.

Introduction: Current stock price refers to the present selling value of a share.

B

Summary Introduction

Adequate information:

  Current Stock Price = $65.93Earnings expected growth rate = 6% per year

To compute: Target Stock Price in one year.

Introduction: A target price is an estimate of the future value of a stock.

C

Summary Introduction

Adequate information:

  EPS = $3.47EPS after one year =$3.6782

To compute: Implied return on the company’s stock over the next year.

Introduction: The implied return is an interest rate equal to the difference between the current rate and the future rate of the stock.

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Chapter 9 Solutions

CORPORATE FINANCE - LL+CONNECT ACCESS

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