E5.2. ROCE and Valuation (Easy) The following are ROCE forecasts made for a firm at the end
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E5.2. ROCE and Valuation (Easy) The following are ROCE forecasts made for a firm at the end of 2009. 2010 2011 2012 Return of common equity (OCE) 12.0% 12.0% 12.0%
ROCE is expected to continue at the same level after 2012. The firm reported book value of common equity of $3.2 billion at the end of 2009, with 500 million shares outstanding. If the required equity return is 12 percent, what is the per-share value of these shares?
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Related Book For 
Financial Statement Analysis And Security Valuation
ISBN: 9780071267809
4th International Edition
Authors: Penman-Stephen-H, Steven Penman
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