Question
At year-end 2007, FI had a book value of $30 per share. For the foreseeable future, the company is expected to achieve a ROE of
At year-end 2007, FI had a book value of $30 per share. For the foreseeable future, the company is expected to achieve a ROE of 15 percent (on trailing book value) and to pay out one-third of its earnings in dividends. The required return is 12 percent.
Forecast FIs residual income for the year ending 31 December 2012.
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Finance For Managers
Authors: E. Martinez Abascal
1st Edition
0077140079, 9780077140076
