Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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You are analyzing HUE stock. You expect that the dividends over the next three years will be $1.75 in year 1, $1.90 in year 2, $2.00 in year 3 and that HUE’s stock price will be $46.32. What is the intrinsic value of HUE’s stock today if your required return is 12 percent?
2.
Because P/E ratios use past earnings, they tend to _________ when an economy peaks and starts to decline.
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