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Solve both asap Consider a firm which is present in 3 industries -X, Y and Z. The firm has 20 crores shares outstanding. The following
Solve both asap
Consider a firm which is present in 3 industries -X, Y and Z. The firm has 20 crores shares outstanding. The following details are given : Particulars X Y Z Industry sales projected 5000 cr 15000 cr 20000 cr Market share of the firm 20% 10% 15% Net profit margin of the firm 18% 15% 25% Use Re = 16.24% i. Calculate the intrinsic value of the share if the firm has a 100% payout ratio. ii. The firm follows a constant payout ratio of 70%. Its return on equity (ROE) is expected to be Case I - 20%, Case II - 16.24%, Case III 12%.Find the intrinsic value of the share and commentStep by Step Solution
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