Assume that EA is trading for $116 and the company has the following financial results:...
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Assume that EA is trading for $116 and the company has the following financial results:
EPS = $3.73. Growth is projected to be 12%. The required rate of return for investors of this type of company is 18%. Using EPS, and not Dividends in the Dividend Discount Model, would you buy this stock?
No. The value of the stock is $69.62 and it is trading at $116
Yes, the value is $69.62 and the company is trading at $116
Not enough information to answer
It depends upon the business cycle
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