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QUESTION FOUR[20] 4.1 Discuss the essential elements of a financial system.(10) 4.2 Siyavuma Ltd, expects a Return on Equity (ROE) of 12%; and has decided
QUESTION FOUR[20]
4.1 Discuss the essential elements of a financial system.(10)
4.2 Siyavuma Ltd, expects a Return on Equity (ROE) of 12%; and has decided tomaintain its plowback/retention ratio of 0.5. Siyavuma Ltd is further expecting earningsper share (EPS) of R3.6 and company's investors expect a return of 16% on the stock.Calculate theintrinsic value and the P/E ratio of Siyavuma Ltd.(10) .
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