Question
The information provided is related to question 2 A and B. You have been provided with information on three listed shares from the JSE in
The information provided is related to question 2 A and B. You have been provided with information on three listed shares from the JSE in the table below.
| Share | EPS ( last Year's) | Plowback Ratio | Growth (Years 1-3) | Growth (Years 4-7) | ROE (Long Run) |
| Textainer Goup Holding Ltd. | 15.80 | 51% | 57% | 20.6% | 7.88% |
| Quilter plc | 16.36 | 38% | 50.5% | 11.7% | 14.21% |
| South32 Ltd. | 17.75 | 38% | 65.9% | 9% | 6.61% |
| ROE (Long Run) |
| 7.88% |
| 14.21% |
| 6.61% |
A) Calculate the value of each share assuming a discount rate of 15% (25 marks) B) Calculate the P/E ratio For each share. (5 marks) C) Calculate the % of each shares value that is attributable to growth. (10 marks)
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Finance A Quantitative Introduction
Authors: Nico Van Der Wijst
1st Edition
1107029228, 978-1107029224
