I need help and step by step instructions with explanations for finance study notes I don’t understand.
Problem is: you buy a stock which has the following options:
Price is $500K
EPS is 33.3
Payout ratio is 25%
Projected EPS Growth is 15%
What will EPS have to be equal to in year 3 for you to get a 12% return on your investment?
What will the share be worth then?
OUR NOTES gives the correct answers, but I need to understand how they were reached and I don’t.
The correct answers are: P/E = 13.1 V = $665
I don’t understand how these were calculated, can you please explain step by step for me.. THank you
Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code “Newclient”
The post I need help and step by step instructions with explanations for finance study notes appeared first on Superb Professors.