Question
An analyst has gathered the following information about Sydney Inc. (amount in millions of dollars): 2021A 2022F 2023F 2024F Closing Equity ($m) 8,780 8,985 9,995
An analyst has gathered the following information about Sydney Inc. (amount in millions of dollars):
| 2021A | 2022F | 2023F | 2024F | |
|---|---|---|---|---|
| Closing Equity ($m) | 8,780 | 8,985 | 9,995 | 10,210 |
| Net Profit | 1,120 | 1,230 | 1,287 | 1,340 |
Assume that cost of equity of Sydney Inc. is 10.25%, and the long-term growth rate of abnormal earnings is 5.2%. The company has 3000 (million) shares outstanding and current market price of the stock of the company is 3.90 per share. Based on the above information, calculate and complete the required information in the following table.
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Financial Accounting Information For Decisions
Authors: Robert W. Ingram, Bruce Baldwin
4th Edition
0324069545, 978-0324069549
