New millennium company stock sells at pe ratio of 206 times


New Millennium Company stock sells at P/E ratio of 20.6 times earnings. It is expected to pay dividends of 2.19$ per share in each of the next 5 years and to generate an EPS of 5.23 $ in year 5. Using dividends - and earnings model and 11%discount rate, compute the stock's justified price

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Financial Management: New millennium company stock sells at pe ratio of 206 times
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