Question
Samsung currently earns $25 per share. It retains 65 per cent of its profits to reinvest at an average return of 18 per cent. Its
Samsung currently earns $25 per share. It retains 65 per cent of its profits to reinvest at an average return of 18 per cent. Its shareholders require a return of 15 per cent
a) What is the value of Samsung's shares?
b) What happens to this value if investors suddenly become more risk-averse by seeking a return of 30 per cent?
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The Handbook Of Loan Syndications And Trading
Authors: Marsh, Lee Shaiman, Bridget Marsh
2nd Edition
1264258526, 978-1264258529
