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the diamond outlet has current earnings per share of $2.20 and an expected earnings growth rate of 2.3 percent. the required return on the stock is 14 percent and the current book value per share is $15.25. what is the current market value of this stock?



Answer :

Manikan130

The current market value of this stock is $16.24

What is meant by market value?

  • Market value, sometimes referred to as OMV or "open market valuation," is the price that an asset would bring in the market or the value that the financial community assigns to a specific equity or company.
  • Market value is the price at which a property would sell in the open market after deducting reasonable amounts for costs like brokers fees.
  • The price at which a property would sell on the open market after deducting reasonable amounts for costs like brokers fees is called the market value.
  • The amount that a person is willing to spend on a property is known as the market price.
  • In real estate transactions, a home's fair market value is determined by a number of variables, including neighbourhood comparables, appraisal value, and current market trends. 
  • P0 = ($2.20 x (1+.023) - ($15.25 x .023) / (.14 - .023)= $16.24

To learn more about market value refer to:

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