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the answer please Octal FZE manufactures a variety of petro based products for the sale in the GCC. The Company's current EPS is 0.106 Rials,
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Octal FZE manufactures a variety of petro based products for the sale in the GCC. The Company's current EPS is 0.106 Rials, current book value per share is 0.554. EPS next year is expected to be 0.110 The company pays fifty percent of earning as dividends and plans to continue with this policy in future as well. Future growth rate of residual earning is expected to be 4%. Assume discount rate is 10%. 1. What is RE in year 1 2. What is the ROCE in year 1 3. Calculate the today's value per share using the residual earning model. Octal FZE manufactures a variety of petro based products for the sale in the GCC. The Company's current EPS is 0.106 Rials, current book value per share is 0.554. EPS next year is expected to be 0.110 The company pays fifty percent of earning as dividends and plans to continue with this policy in future as well. Future growth rate of residual earning is expected to be 4%. Assume discount rate is 10%. 1. What is RE in year 1 2. What is the ROCE in year 1 3. Calculate the today's value per share using the residual earning modelStep by Step Solution
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