Using the pe ratio appriach to valuation calculate the, Ask an Expert

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Using the P/E ratio appriach to valuation, calculate the value of a share of stock under the following conditions

-the investor's required rate of return is 13%

- the expected level of earnings at the end of this year is $8

-the firm follows a policy of retaining 40% of its earnings

-the return on equity is 15%

-similar shares of stock sell at multiples of 8.571 times earnings per share

ROUND TO THE NEAREST CENT

-the price of the stock using the P / E ratio valuation method is? $

-the stock price using the dividend discount model is? $

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92172636

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