Question
Rogers Communications earned $0.83 per share in 2002. Eleven years later, in 2013 it earned $3.42. a. What was the growth rate in Rogers' earning
Rogers Communications earned $0.83 per share in 2002. Eleven years later, in 2013 it earned $3.42.
a. What was the growth rate in Rogers' earning per share (EPS) over the 11-year period?
b. If the EPS in 2013 had been $2.85 rather than $3.42, what would the growth rate have been?
c. Assume that the growth rate obtained in part 2(a) is maintained. How long would it take for Rogers' EPS to double?
d. If the EPS given in part 2(b) and the growth rate obtained in part 2(b) are maintained indefinitely into the future, what would the likely value of Rogers' stock be?
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