Joker stock has a sustainable growth rate of 10 percent, ROE of 16 percent, and dividends per share of $3.20. If the PE ratio is 15.7,what is the value of a share of stock?Note: Do not round intermediate calculations. Round your answer to 2 decimal places.Stock value per share

$55.82.Explanation:1. Calculate the earnings per share (EPS):We can use the sustainable growth rate…

Answered: Joker stock has a sustainable growth…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A stock has had the following year-end prices and dividends: Year 1 Price Dividend $ 43.41 2 48.39 $0.66 3 57.31 0.69 4 45.39 0.80 5 52.31 0.85 6 61.39 0.93 What are the arithmetic and geometric returns for the stock? (Do not round intermediate calculations. Round the final answers to 2 decimal places.)
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Joker stock has a sustainable growth rate of 10 percent, ROE of 16 percent, and dividends per share of $3.20. If the PE ratio is 15.7, what is the value of a share of stock? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Stock value per share