Question
At the end of financial year 2012, an analyst has made the following forecasts for ABC Co. for the year of 2013. Earnings will be
At the end of financial year 2012, an analyst has made the following forecasts for ABC Co. for the year of 2013. Earnings will be $3 per share and dividend payment will be $0.5 per share. The current P/E ratio for ABC is 18 and is expected to remain unchanged in the next year. What is the current value of each of ABCs shares? Assume ABCs cost of equity is 10%.
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Digital Business And Electronic Commerce
Authors: Bernd W Wirtz
1st Edition
3030634817, 9783030634810
