A stock is expected to pay a dividend of $1.000 next year. Dividends are expected to grow at the rate of 3% per year after that. Earnings next year are expected at $1.50. The risk-free rate of return is 2% and the market risk premium is 5%. Assume this stock has a beta of 1.2. The P/S multiple is 1.7. The company has revenue of $150B, net income of $16B, and have a profit margin of 10.25%.
What is the return on equity?
What is the intrinsic value?
What is the present value of growth opportunities?
What is the approximate market cap?
What is the P/E?