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) | 11.86 |
| 0(per share) | 12.15 |
| 0(per share) | 3.59 |
| 12.38 % | |
| 4.44 % | |
| 11.28 % |
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Financial Management Principles and Applications
Authors: Sheridan Titman, Arthur J. Keown, John H. Martin
13th edition
134417216, 978-0134417509, 013441750X, 978-0134417219
