Equity valution for bank of america

Reference no: EM1354498

You are considering an investment in Bank of America (BAC, NYSE). From your analysis, you believe this stock should be valued so as to produce a 9.5 percent long-term rate of return.

Using the current stock price, determine the value of the stock using

a. The ten-year historical dividend growth rate

b. The consensus analyst five-year forecasted growth rate from Yahoo! Finance

Reference no: EM1354498

Questions Cloud

Explain algorithm which gives initial infection of computer : Explain an O(m+n) algorithm which, given an initial infection of a computer Ca at time t determines for each other computer the earliest time at which it can become infected.

Improve organizational performance-employee character : Show which of the subsequent employee characteristics have the greatest impact on employee behavior: general attitudes, job satisfaction, emotions and moods, personality, values, or perception

Explain advertisers can then create a profile of you : Explain Advertisers can then create a profile of you based on your browsing behavior as well as store your browsing history as long as they like.

What make both the farmer and the rancher willing to trade : What make both the farmer and the rancher willing to trade with one another.

Equity valution for bank of america : You are considering an investment in Bank of America (BAC, NYSE). From your analysis, you believe this stock should be valued so as to produce a 9.5 percent long-term rate of return.

Find total assets turnover ratio : Trentham product currently has $2,000,000 in account receivalbe and its days sales utstanding is thirty-three days. if accounts receivable comprises half of company's current assets and Trentham has $6,000,000 in net fixed assets

Reconstructing revenue-net worth : While the net worth method focuses on the balance sheet and the increase in net worth for the year the bank deposit method looks at the money deposited and withdrawn throughout the year.

Aligning staffing systems with an organizational strategy : First use the various orientation frameworks to examine and assess your firm's current orientation and to make recommendations for improvement. How will the firm retrain, hire staff, or outsource to meet future demand?

Illustrate the purpose of this optional homework : Illustrate the purpose of this optional homework is to learn how specialization and trade benefit all trading parties.

User Account

All Pages