Using a gordon growth model what is a reasonable estimate


You are considering the purchase of a share of stock. In the most recently reported fiscal year Earnings per Share (EPS) were $2.15. You expect earnings to grow at 0.85% per year into the future, and you require a return of 7% on the investment. Using a Gordon Growth Model, what is a reasonable estimate for the share price?

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Financial Management: Using a gordon growth model what is a reasonable estimate
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