Compute the price of the stock has a p-sales ratio

Assignment Help Macroeconomics

Reference no: EM1333214

Rate of return

1. Determining required rate of return.
A stock pays a dividend of $2.75. It's current price is $19.00.
The expected growth rate is 5%.
What is the required rate of return?

2. 2 Stage Growth Model
Given the following data calculate the price of the stock:
D0 = $1.75; n = 5 years; g1 = 20%; g = 5% ; rs = 10%

3. Relative Valuation
A stock has a P/E ratio of 20, and it's estimated that its earnings per share will be $5.00. Calculate the price of the stock. A stock has a P/Sales ratio of 3. Sales per share is $16. Find the price of the stock.

Reference no: EM1333214

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