Question
Consider a firm that has Earning Per Share of $100 at the end of 1st year, a retention ratio of 75-percent (the firm retains 75%
Consider a firm that has Earning Per Share of $100 at the end of 1st year, a retention ratio of 75-percent (the firm retains 75% of its earning as retained earning every year starting at the end of the 1st year), and a return on retained earnings of 16-percent. Whats the share price of the firm if the discount rate of 20-percent?
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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Peggy L. Hedges, Philip Chang, Keith C. Brown, Hedges Reilly Brown
1st Canadian Edition
0176500693, 978-0176500696
