Author Question: FWP Co.'s P/E ratio is 13. The stock's beta is 1.3; the risk free rate is 2%; the expected market ... (Read 61 times)

haydenjmcm · **on:** Mar 29, 2022

FWP Co.'s P/E ratio is 13. The stock's beta is 1.3; the risk free rate is 2%; the expected market rate of return is 11%. The last dividend was $1.80 and dividends are expected to grow at 3% annually for the foreseeable future. To find the intrinsic value of this stock, we should
◦ multiply $1.80 by 13.
◦ divide $1.80 by 0.137.
◦ multiply $1.85 by 10.
◦ divide $1.85 by 0.107.

mamboz · **Reply #1 on:** Mar 29, 2022

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