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Finance: Calculating the Value of a Stock

Using the following information on Bear Corporation and the dividend discount model, calculate the value of Bear Corporation's stock.

Growth: 12% ROE: 15%
Earnings Per Share Last Year: $10.00 Beta: 1.50
Risk Free Rate: 5.00% Market Risk Premium: 6.00%

Solution Preview

By CAPM, the firm's required return rate is
R = Rf + Beta * ...

Solution Summary

This solution provides calculating for finding the value of a stock.

$2.19