Gun manufacturer bloodbath amp beyond expects earnings of 5


Gun manufacturer Bloodbath & Beyond expects earnings of $5 million on $20 million of equity this year, paying 60% of its earnings as dividends. It expects no changes in its ROE or dividend payout ratio in the near future. If the current dividends are $3.00 a share. Assuming BBB’s cost of equity is 19.5%, what is the stock’s intrinsic value?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Gun manufacturer bloodbath amp beyond expects earnings of 5
Reference No:- TGS01567683

Expected delivery within 24 Hours