Homework answers / question archive / You buy a stock which has the following features: Price: ?500 EPS: ?33

You buy a stock which has the following features: Price: ?500 EPS: ?33

Finance

Share With

You buy a stock which has the following features:

Price: ?500

EPS: ?33.3

Payout ratio: 25%

Projected EPS growth: 15%

What will EPS have to be equal to in year 3 for you to get a 12% return on your investment? What will the share be worth then?