Question
28 Value per Share The following are ROCE forecasts made for a firm at the end of 2017. 2018 2019 2020 Return on Common Equity
28 Value per Share
The following are ROCE forecasts made for a firm at the end of 2017.
| 2018 | 2019 | 2020 | |
|---|---|---|---|
| Return on Common Equity (ROCE) | 18% | 18% | 18% |
ROCE is expected to continue at the same level after 2020. The firm reported book value of common equity of $6.8 billion at the end of 2017, with 600 million shares outstanding. If the required equity return is 18 percent, what is the per-share value of these shares ?
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Essays In Finance
Authors: Robert Giffen
1st Edition
111629088X, 9781116290882
