What is a reasonable estimate for the share price

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Reference no: EM131961076

Question: 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 0.75% per year into the future, and you require a return of 7.50% on the investment. Using a Gordon Growth Model, what is a reasonable estimate for the share price?

Reference no: EM131961076

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