Niraj_a book says 19. Solution is 4.67%. 20. Some required information was not provided. Current EPS=2.40 Current Stock price=29 Cost of Equity=10% Return on Book Equity=12% Sustainable Growth Rate=4% So P=E/R+PVGO 29=2.4/0.1 + PVGO PVGO=29-24=5$
jeez bradleyz, thanks for posting an incomplete question man
newsuper Wrote: ------------------------------------------------------- > jeez bradleyz, thanks for posting an incomplete > question man I’m really sorry about that. I was in a hurry and should have double checked before posting it. I wish there was a way to edit the question.
yeah no worries, it made me go through the books a fair bit checking out cost of equity etc etc which is always a good thing
shazaaam! i feel better now. better to backsolve from the regular GGM than go off of a formula, for the first q.
Bradleyz Wrote: ------------------------------------------------------- > newsuper Wrote: > -------------------------------------------------- > ----- > > jeez bradleyz, thanks for posting an incomplete > > question man > > > I’m really sorry about that. I was in a hurry and > should have double checked before posting it. I > wish there was a way to edit the question. damm - so you are the new MOLE for L2. Each level has a mole and we had one mole last year too at L2.
the MOLE?