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+--- Thread: Facebook has gone public by issuing equity. As an analyst for a bank,? (/thread-28226.html)
Facebook has gone public by issuing equity. As an analyst for a bank,? - Dfgdg - 11-09-2012 01:03 PM
Facebook has gone public by issuing equity. As an analyst for a bank, you've estimated that the company will have a Beta of 1.2. You know that Facebook just gave a dividend of $4.00 per share. You anticipate high growth of this dividend for the first few years. You predict that dividend will grow by 20% for three years. After that, you anticipate growth to be a more modest 5% per year. The risk-free rate is 2% and and the average return of the market is 13%. What is the price of Facebook's stock?
- Uncommon Sense - 11-09-2012 01:12 PM
666