单选题
An analyst gathered the following information about a company:
Return on equity
20.0%
Earnings retention rate
50.0%
Current dividend per share (DO) paid on the company's common stock
2.00
Required rate of return on the company's common stock
15.0%
Beta for the company's stock
0.8
The stock is currently selling for $ 50 per share, which of the following best characterizes the: Intrinsic value of the stock Type of stock A. 30 Speculative B. 44 Cyclical C. 44 Speculative
【正确答案】
C
【答案解析】Intrinsic value of the sock: 2.20/(15%-10%)=44.00.
The stock is overvalued; it is a speculative stock.