Question
3. Using a Residual Income Model (RIM), where residual income grows at rate g s for n=6 years and rate g thereafter, compute the intrinsic
3. Using a Residual Income Model (RIM), where residual income grows at rate g s for n=6 years and rate g thereafter, compute the intrinsic value per share for Acme Inc. given the following information from their most recent financial statement:
| Item | Value |
| B V1 (per share) | 11.86 |
| B V 0 (per share) | 12.15 |
| N I 0 (per share) | 3.59 |
| g s | 12.38 % |
| g | 4.44 % |
| R c s | 11.28 % |
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Business And Personal Finance
Authors: McGraw-Hill
1st Edition
0078945801, 9780078945809
