Question
MANGWARA Plc current earnings per share are TZS 20 and dividend per is TZS TZS10 per share this makes the constant payout ratio of 50%,
MANGWARA Plc current earnings per share are TZS 20 and dividend per is TZS TZS10 per share this makes the constant payout ratio of 50%, the earnings and dividends are forecasted to grow at 5% p.a, the required rate is return is 7.6%. If the current market price of share is TZS 450/=
(i) Estimate the Current Price Earnings Ratio
(ii) Estimate the intrinsic value of the shares.
(iii) Recommend if share should be purchased or not
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Ecological Money And Finance
Authors: Thomas Lagoarde-Segot
1st Edition
3031142314, 978-3031142314
