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A company declared an EPS of $3 over its most recent period in sales of $50/share. Total assets per share is $25 and the total
A company declared an EPS of $3 over its most recent period in sales of $50/share. Total assets per share is $25 and the total debt ratio is 1/2. They paid a dividend per share of $0.8 for the most recent period. The estimated beta for the company's stock is 1.50. The expected return is 13% and the rate of return on the 10-year note is 3%. If the current stock price is $54.5, what is the intrinsic value?
Please include ROE calculation in your answer.
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