Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

2.91% $114.07 Facebook, Inc. (FB) NasdagGS- NasdagGS Delayed 29.14 points. A sto

ID: 2787575 • Letter: 2

Question

2.91% $114.07 Facebook, Inc. (FB) NasdagGS- NasdagGS Delayed 29.14 points. A stock has a required return of 9%. The stock has a dividend yield of 3% and is currently in a constant growth phase. A. 7 points. What is the stock's constant growth 177.95-0.12 17.09B Market Cap Beta PE Ratio (TTM EPS (TTM) Earnings Date Forward Dividend & Yield Ex-Dividend Date y Target Est rate? 0.56 39.03 4.47 Jan 30, 2018-Feb 6, 2018 N/A (NIA) NIA 206.63 7 points. What will be the price of the stock in 5 years? B. eurvetence 28.10 Points, Given the data in the above tabie, what is the holding period return (HPR) for Facebook stock?

Explanation / Answer

PE ratio is 39.83

EPS= 4.47

Price per share= 178.04$ = 4.47*39.83

Target price in one year = 206.63$

HPR= (206.63- 178.04)/ 178.04*100= 16.058%

2. RR= 9%

Dividend yield= dividend/ price* 100= 3%

The price is 30$

dividend= 0.9

RR= dividend/po + g

9%= 3%+g

g= 6%

3. Current price is 30$

30×(1.06)5= 40.15$