Question
The following are forecasted data for the performance of Pear Inc. (in millions) 2013 2014 2015 2016 2017 2018 EPS 4.90 4.60 4.32 4.59 4.89
The following are forecasted data for the performance of Pear Inc. (in millions)
| 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | |
| EPS | 4.90 | 4.60 | 4.32 | 4.59 | 4.89 | |
| DPS | 1.60 | 1.60 | 1.60 | 1.60 | 1.60 | |
| CSE | 30 |
The cost of equity is 8%
What is the intrinsic value of Pear at the beginning of 2014 assuming that residual income grows at 5% annually after 2018?
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Day Trading Strategies And Risk Management
Authors: Richard N. Williams
1st Edition
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