Question
A company has a book value per share of $11.70 and a current market price of $14.70. Long-term ROE is expected to be 11.8%, long-term
A company has a book value per share of $11.70 and a current market price of $14.70. Long-term ROE is expected to be 11.8%, long-term growth is expected to be 2.2% and the cost of equity is 10.4%. What is the intrinsic value of the stock?
a.
$12.20
b.
$13.70
c.
$15.10
d.
$14.20
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Financing Nonprofits Putting Theory Into Practice
Authors: Young, Dennis R.
1st Edition
0759109885,0759114129
