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Company XYZ has a book value (equity) of $10 per share at end of 2018 and made $1.00 EPS (earnings per share). The company also
Company XYZ has a book value (equity) of $10 per share at end of 2018 and made $1.00 EPS (earnings per share). The company also paid a dividend of .30 per share in 2018. The stock has a beta of 1.1. The stock market return in 2018 was 9% and risk free rate was 3%.
e) What's the residual income per share created by the company in 2018?
f) Whats the stock value per share under Residual Income Model (RIM)?
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