Question
We want to compute the EPS of Chary. It has 2 m shares outstanding and $80 of book value of equity. Chary expects to sell
We want to compute the EPS of Chary. It has 2 m shares outstanding and $80 of book value of equity. Chary expects to sell $20m worth of sales and have EAT of $5m and keep 40% of its profit. Furthermore, it has $100m of assets. Its coe is .12 and its bheta is 1.2. Calculate Charys EPS.
From the given information, compute the EPS, dividend and value of Chary.
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Applied Quantitative Finance
Authors: Härdle
3rd Edition
3662544857, 978-3662544853
