Morrisons Van Hire (MVH) is a Belfast company that specialises in leasing vans. Given the following information:
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Morrison’s Van Hire (MVH) is a Belfast company that specialises in leasing vans. Given the following information:
earnings per share (EPS) 1 year from now= £1.60, cost of equity (k) = 10% per annum, earnings retention ratio
(b) = 0.60, growth rate in retained earnings (g) = 10% per annum, and inflation = zero.
On the basis of this information, you might estimate the share price for MVH as:
a. £10.0
b. £24.0
c. £16.0
d. £40.0
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Related Book For
Stock Markets And Corporate Finance A Primer
ISBN: 9781800611474,9781800611498
1st Edition
Authors: Michael Dempsey
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