Question
Q # 03: Following are the data related to Silver Corporation . (Marks 07) 2008 2009 2010 2011 2012 2013 Sales 36000 36570 41213 44646
Q # 03: Following are the data related to Silver Corporation. (Marks 07)
| 2008 | 2009 | 2010 | 2011 | 2012 | 2013 |
Sales | 36000 | 36570 | 41213 | 44646 | 52345 | 65434 |
Net Income | 24400 | 25365 | 25765 | 27765 | 29876 | 31245 |
Total Shareholder Equity | 15190 | 16452 | 17543 | 18897 | 19654 | 18765 |
Outstanding Shares | 2300 | 2300 | 2300 | 2300 | 2300 | 2300 |
Total Liabilities | 9700 | 10,000 | 11,000 | 11,760 | 12,230 | 12,900 |
Long Term Liabilities | 7000 | 8100 | 9300 | 9600 | 10,120 | 10230 |
Cost of equity of company is 8 %. The growth rate for residual income after 2013 will be constant forever at 4 %.
You are required to determine the value of stock using Residual Income Model as off 2009.
using this formula= net income-equity change
not using excel
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