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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

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

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
Problem 14P
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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
Transcribed Image Text: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
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