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Assume a company plans to have Earnings per Share of $10 next year and plans to reinvest 40% of them at an annual rate of
Assume a company plans to have Earnings per Share of $10 next year and plans to reinvest 40% of them at an annual rate of 24% in perpetuity.
Assume also the discount rate is 10%.
How much is the value of equity?
Assume also the discount rate is 10%.
How much is the value of equity?
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To calculate the value of equity we can use the Gordon Growth Model w...
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Principles Of Managerial Finance
Authors: Lawrence J. Gitman, Chad J. Zutter
13th Edition
9780132738729, 136119468, 132738724, 978-0136119463
