Question
A company has a book value of equity of $244 million, an expected ROCE of 15% and a cost of equity capital of 14.8%. What
A company has a book value of equity of $244 million, an expected ROCE of 15% and a cost of equity capital of 14.8%. What is the company's market value of equity if its dividend payout ratio is 80% and its long-run growth rate in residual earnings is 3% p.a.?
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International Finance Theory And Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J Melitz,
11th Edition
013451954X, 9780134519548
