Valuation help for an assignment
The question is below:
In 2019, what is the forecast share price of the company to provide an appropriate risk adjusted return to shareholders?
The data we have is for 2018: Revenue - 500m EBITDA - 120m EPS - 0.88 DPS - 0.47 Payout ratio - 53% Share price - $23 ke - 10% Risk free rate - 2.0%
Not sure what they are meaning by risk adjusted return to shareholders and how you would calculate a forecast share price from this. Any assistance would be appreciated.
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