Homework Help: investing

Posted by kenny on Thursday, January 10, 2008 at 9:53pm.

new millenium company's stock sells at a P/E ratio of 21 times earnings. it is expected to pay dividends of $2 per share in each of the next 5 years and to generate an EPS of $5 i year 5. using the dividends-and-earnings model and a 12% discount rate, compute the stock's justified price.

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