Question
An analyst at time t is calculating the present value of abnormal earnings. She has the following information: Beginning book value of equity = $50
An analyst at time t is calculating the present value of abnormal earnings. She has the following information:
Beginning book value of equity = $50 000
Net income = $10 000
Cost of equity = 12 per cent
What would be the present value of abnormal earnings at t+1?
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The New Microfinance Handbook A Financial Market System Perspective
Authors: Joanna Ledgerwood, Julie Earne, Candace Nelson
1st Edition
0821389270, 978-0821389270
