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Unformatted text preview: (PE = MKP/EPS) If you expect the current earnings per share of $1.00 to grow at a rate of 10% for five years and in 5 years trade at a price earnings ratio of 15 times earnings. It would pay the same $1.50 dividend per share at the end of each year for five years. If you required the same 8% return would you buy the stock?...
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This note was uploaded on 11/13/2011 for the course CIVE 2*** taught by Professor - during the Spring '11 term at Carleton CA.
- Spring '11