Question
Fleury Security Limited (FSL) is projected to have earnings per share (EPS) of $3.50 next year, and the firms dividends are 30% of earnings. Investors
Fleury Security Limited (FSL) is projected to have earnings per share (EPS) of $3.50 next year, and the firms dividends are 30% of earnings. Investors have a required return on FSL shares of 12.4%. The company has a profit margin of 10%, total asset turnover of 0.9, and total debt ratio of 0.4.
- Calculate the ROE of the company.
- Calculate the price of FSL shares.
- How much of that price is due to future growth opportunities?
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Fundamentals Of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
16th Edition
0357517571, 978-0357517574
