IF say you are given book value $50, earnings for year 1,2,3,4 is $2 throughout and the book value in year 5 is $65. How do you calculate the justified price? The residual model formula is P = Bo + PV of future earnings.
IF say you are given book value $50, earnings for year 1,2,3,4 is $2 throughout and the book value in year 5 is $65. How do you calculate the justified price? The residual model formula is P = Bo + PV of future earnings.