Anna's Antiques pays no dividends. In 2 years, the future earnings per share (EPS) is...
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Accounting
Anna's Antiques pays no dividends. In 2 years, the future earnings per share (EPS) is expected to be $3.73. The future P/E is expected to be 8.04 and your required rate of return is 6.30% Find the current value of the stock. (Use the appropriate formula from above and remember to show all of your work.)
Variable growth model Value of a share of stock = DCF model Value of stock = d (1+r) d (1+r) D (1+r) D (1+r) Dn (1+r)n Dn (1+r)n (EPS X PE) (1+r)n Dn(1+g) (r-g) (1+r)n
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