Question
Using a Residual Income Model (RIM), where residual income grows at rate for n=6 years and rate thereafter,compute the intrinsic value per share for Acme
Using a Residual Income Model (RIM), where residual income grows at rate for n=6 years and rate thereafter,compute the intrinsic value per share for Acme Inc. given the following information from their most recent financial statement:
| Item | Value |
1(per share) | 11.87 |
0(per share) | 12.65 |
0(per share) | 2.05 |
| 12.09 % | |
| 4.44 % | |
| 11.28 % |
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Fundamentals of Investments Valuation and Management
Authors: Bradford Jordan, Thomas Miller
7th edition
978-0078096785, 78096782, 978-0077861636, 77861639, 978-0078115660
