Question
A company has a book value per share of $11.30 and a current market price of $13.70. Long-term ROE is expected to be 14.0%, long-term
A company has a book value per share of $11.30 and a current market price of $13.70. Long-term ROE is expected to be 14.0%, long-term growth is expected to be 1.5% and the cost of equity is 11.8%. What is the intrinsic value of the stock(show the steps )? Select one:
a. $13.71
b. $15.61
c. $12.31
d. $14.31
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Managerial Finance Essentials
Authors: Charles O. Kroncke, Alan E. Grunewald, Erwin Esser Nemmers
2nd Edition
0829901590, 978-0829901597
