You are interested in the ABC Corp and week to place a value on the...
90.2K
Verified Solution
Link Copied!
Question
Accounting
| You are interested in the ABC Corp and week to place a value on the | |||
| 3 | stock so you can tell whether it is over-valued or under-valued | ||
| 4 | at this time. | ||
| 5 | You have obtained the following financial data. | ||
| 6 | It is both micro and macro related data. | ||
| 7 | The micro data of ABC Corp: | ||
| 8 | The current price of ABC stock is | $33.15 | |
| 9 | It recently paid a dividend of | $2.83 | |
| 10 | Constant dividend growth rate | 6.98% | |
| 11 | The macro data of ABC corp: | ||
| 12 | Treasury bills have a rate of | 1.88% | |
| 13 | The return on the S&P Index is | 12.11% | |
| 14 | The stock has a beta of | 1.78 | |
| 15 | |||
| 16 | What is Alpha and what is the real intrinsic value os ABC stock? | ||
| a. | Alpha = -0.0398 Real Intrinsic Value = $23.09 | |
| b. | Alpha = -0.3980 Real Intrinsic Value = $33.09
| |
| c. | Alpha = -0.0598 Real Intrinsic Value = $32.09
| |
| d. | Alpha = -0.0893 Real Intrinsic Value = $23.09
|
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.