Question
Company analysis Find a high technology company. AAPL, MSFT, or some other high technology company. Find out P price per share, the E earnings per
Find a high technology company. AAPL, MSFT, or some other high technology company. Find outPprice per share, theEearnings per share,Rthe ROE, therCAPM opportunity cost of capital, and solve forn, the number of years in which the market projects that ROE will remain at that level. Show your computation.
Better if you chose a company with no dividend payments. But you could us the alternative formula designed or companies which are currently paying dividends and solve forn.
Is it 10 years? Is it 25 years? Is it only 5 years?
If the company is currently paying dividends, you must use the alternative formula.
I don't understand what n, the number of years in which the market projects that ROE will remain at that level. Please help me to finish this exercise and illustrate what this number n means and how to find it. Thank you.
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