Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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 comment

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mathematical Finance Core Theory Problems And Statistical Algorithms

Authors: Nikolai Dokuchaev

1st Edition

0415414482, 978-0415414487

More Books

Students also viewed these Finance questions

Question

6. Conclude with the same strength as in the introduction

Answered: 1 week ago

Question

7. Prepare an effective outline

Answered: 1 week ago