Question
EPS(1) = $6 Dividends per share (1) =0 Book Value per share (0) =$12 Company XYZ does not plan to pay any dividends in years
EPS(1) = $6 Dividends per share (1) =0 Book Value per share (0) =$12
Company XYZ does not plan to pay any dividends in years 1, 2 ,or 3. It will set dividends equal to its earnings. Assume that the ROE will stay constant over time. The opportunity cost of capital is 20%. How much is Company ABC worth per share?
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The Analysis And Use Of Financial Statements
Authors: Gerald I. White, Ashwinpaul C. Sondhi, Haim D. Fried
2nd Edition
0471111864, 978-0471111863
