Question
Absolute Valuation 1. INV Design Ltd just paid a dividend of $4, and its earnings per share was $6. The Net Income margin is 15%,
Absolute Valuation 1. INV Design Ltd just paid a dividend of $4, and its earnings per share was $6. The Net Income margin is 15%, Asset Turnover is 1.25 and Debt-to-Equity is 0.6. The appropriate rate of return on INV is 30%.
a) Calculate the current share price using the Dividend Discount Model
b) Calculate the PE ratio of INV using historic trailing 12 months earnings.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
a Calculate the current share price using the Dividend Discount Model DDM The Dividend Discount Mode...
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Step: 3
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Intermediate Accounting
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
1st edition
978-0133251579, 133251578, 013216230X, 978-0134102313, 134102312, 978-0132162302
