Question
Sisters Corp expects to earn $5 per share next year. The firms ROE is 15% and its plowback ratio is 60%. If the firms market
| Sisters Corp expects to earn $5 per share next year. The firms ROE is 15% and its plowback ratio is 60%. If the firms market capitalization rate is 10%. |
a.
| Calculate the price with the constant dividend growth model.
Price = b. Calculate the price with no growth
Price = c. What is the present value of its growth opportunities
PVGO = |
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Innovation In Public Transport Finance
Authors: Shishir Mathur
1st Edition
1138250139, 978-1138250130
