The Greenspan Model equivalent value for an individual stock is found by:
A) estimating the 10-year Treasury bond rate for the next 10 years and adding this value to the current earnings yield.
B) multiplying the difference between the 10-year Treasury yield and the estimated earnings yield by a factor of two.
C) dividing the estimated earnings/share by the current 10-year Treasury yield.
D) multiplying the estimated earnings/share by the current 10-year Treasury yield.
Correct Answer:
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