Question
A firms current market price is $15/share, and its book value is $5/share. Analysts forecast that the firms BV will grow by 10%/per year indefinitely,
A firms current market price is $15/share, and its book value is $5/share. Analysts forecast that the firms BV will grow by 10%/per year indefinitely, and the cost of equity is 15%. Given these facts, what is the markets expectation of the firms long-term average ROE?
1. Calculations:
2. Answer:
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Design Of Cost Management Systems The Text Cases And Readings
Authors: Robin Cooper
1st Edition
0132041243, 978-0132041249
