Problem 4-17 Two-stage DCF model Company Z-prime's earnings and dividends per share are expected to grow by 3% a year. Its growth will stop aft and afterward, it will pay out all earnings as dividends. Assume next year's dividend is $9, the market capitalization year's EPS is $16. What is Z-prime's stock price? (Do not round intermediate calculations. Round your answer to 2 Answer is complete but not entirely correct. Stock price $ 156.42 X

Problem 4-17 Two-stage DCF model Company Z-prime's earnings and dividends per share are expected to grow by 3% a year. Its growth will stop aft and afterward, it will pay out all earnings as dividends. Assume next year's dividend is $9, the market capitalization year's EPS is $16. What is Z-prime's stock price? (Do not round intermediate calculations. Round your answer to 2 Answer is complete but not entirely correct. Stock price $ 156.42 X

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter7: Valuation Of Stocks And Corporations

Section: Chapter Questions

Problem 22SP

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