What is the present value of growth opportunities

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A stock is expected to pay a dividend of $1.000 next year. Dividends are expected to grow at the rate of 3% per year after that. Earnings next year are expected at $1.50. The risk-free rate of return is 2% and the market risk premium is 5%. Assume this stock has a beta of 1.2. The P/S multiple is 1.7. The company has revenue of $150B, net income of $16B, and have a profit margin of 10.25%.

What is the return on equity?

What is the intrinsic value?

What is the present value of growth opportunities?

What is the approximate market cap?

What is the P/E?

Reference no: EM13948597

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