SBC has a trailing P/E of 14 and dividends will continue to grow at its...
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Finance
SBC has a trailing P/E of 14 and dividends will continue to grow at its current rate of 4.5% per year into the indefinite future. Given a current dividend and EPS of $0.7 and $2.00 per share. Required return on equity is 8% determine whether the share is:
EPS: $0.70
Price per share: $2.00
ROE: 8%
Is the stock overvalued, undervalued or fairly priced? Please include an equation to use. Many thanks!
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