Early in 2019, Mathew Is Analyzing Shares of Janeff Corp

question 104

Multiple Choice

Early in 2019, Mathew is analyzing shares of Janeff Corp. He expects the following dividends per share (end of year) . 2019 $1.00
2020 $1.25
2021 $1.50
He expects 2021 earnings per share to be $4.50 and Janeff's P/E ratio to be 20. His required rate of return for this stock is 12%. He should pay no more than

• A) $43.75 per share.
• B) $67.02 per share.
• C) $68.75 per share.
• D) $93.75 per share.

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