R should you revise your answer to part a a 1175

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r ? Should you revise your answer to part a)? r
5) Phoneix Corp faltered in the recent recession but has recovered since. EPS and dividends have grown rapidly since 2014. 2014 2015 2016 2017 EPS $0.75 $2.00 $2.50 $2.60 Dividends $0 $1.00 $2.00 $2.30 Dividend Growth - - 100% 15% The figures for 2017 and 2018 are of course forecasts. Phoenix’s stock price today in 2016 is $21.75. Phoenix’s recovery will be complete in 2018, and there will be no further growth EPS or dividends. A security analyst forecasts next year’s rate of return on Phoenix stocks as follows: 2018 $2.65 $2.65 15% in
MANG 2004 ANDREW URQUHART 2014 What’s wrong with the security analysts forecast? What is the actual expected rate of return over the next year?
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