Question
[15] A very small public firm has $538M in assets and $218M in debt. Investors require a return of 12% and a 20% payout ratio.
[15] A very small public firm has $538M in assets and $218M in debt. Investors require a return of 12% and a 20% payout ratio. Net income was just reported at $40M with $0.80 EPS.
(a) Whats the growth rate for this firm?
(b) How many shares are outstanding?
(c) What is the price per share (hint: use the Gordon model), &
(d) What is the market-cap of this firm?
% Growth rate: _____ # Shares outstanding: _____ Price per share: _____ Market capitalization: _ _ ___
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International Financial Management
Authors: Cheol Eun, Bruce Resnick
5thEdition
0073382345, 9780073382340
