AN INVESTOR GATHERS THE FOLLOWING DATA TO ESTIMATE THE INTRINSIC V...

43. - MOCK AND SAMPLE EXAMS CFA 2012 L1 SAMPLE EXAM V1 QUESTION
MOCK AND SAMPLE EXAMS CFA 2012 L1 SAMPLE EXAM V1 QUESTION
43. An investor gathers the following data to estimate the intrinsic value of a company’s stock using the justified forward P/E approach. Next year’s earnings per share $3.00 Return on equity 12.5% Dividend payout ratio 60% Required return on shares 10% The intrinsic value per share is closest to: A. $36. B. $48. C. $72.