Exercise #4

Exercise #4 - What is the current value of this stock...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Finance 355: Investments Instructor: Shuming Liu In-Class Exercise 4 The current book value per share of Trenton Motors is $11.90 and the required return on the stock is 15 percent. The firm expects earnings per share of $1.40 next year with annual earnings growth of 4 percent.
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: What is the current value of this stock? ANSWER: 40 . 8 $ 04 . 15 . ) 04 . 90 . 11 ($ 40 . 1 $ g k g B EPS 1 P...
View Full Document

This note was uploaded on 11/18/2011 for the course FIN 355 taught by Professor Phsiao during the Fall '08 term at S.F. State.

Ask a homework question - tutors are online