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EPS = $3 ROE = 25% Beta = 3 plowback = 90% R(f) = 2% R(m) = 9% MRP = 7% ( R(m) - R(f)
EPS = $3
ROE = 25%
Beta = 3
plowback = 90%
R(f) = 2%
R(m) = 9%
MRP = 7% ( R(m) - R(f) )
Intrinsic Value = $73.50
Today's Closing Price = $60
Trailing P/E Multiples = 24.50
Forward P/E Multiples = 20
PVGO = 57.52
Question - What is the expected return when initial margin is 25%, maintenance is 20% and rate on margin loan is 5% for the next 12 months?
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