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What are the major problems faced by an investor to determine the fair value of a following company share? Income Statement 2015 2016 Revenue Depreciation
What are the major problems faced by an investor to determine the fair value of a following company share?
Income Statement 2015 2016 Revenue Depreciation Other operating costs Income before taxes Taxes Net income Dividends Earnings per share Dividend per share Common shares outstanding (millions) Balance Sheet $ 474 20 368 86 26 60 18 $0.714 $0.214 84.0 2015 $ 598 23 460 115 35 80 24 $0.952 $0.286 84.0 2016 Current assets Net property, plant, and equipment Total assets Current liabilities Long-term debt Total liabilities Shareholders' equity Total liabilities and equity Capital expenditures $ 201 474 $ 675 57 0 $ 57 618 675 34 $ 326 489 $ 815 141 O $ 141 674 815 38 Required rate of return on equity Growth rate of industry Industry P/E ratio 14% 13% 26 Income Statement 2015 2016 Revenue Depreciation Other operating costs Income before taxes Taxes Net income Dividends Earnings per share Dividend per share Common shares outstanding (millions) Balance Sheet $ 474 20 368 86 26 60 18 $0.714 $0.214 84.0 2015 $ 598 23 460 115 35 80 24 $0.952 $0.286 84.0 2016 Current assets Net property, plant, and equipment Total assets Current liabilities Long-term debt Total liabilities Shareholders' equity Total liabilities and equity Capital expenditures $ 201 474 $ 675 57 0 $ 57 618 675 34 $ 326 489 $ 815 141 O $ 141 674 815 38 Required rate of return on equity Growth rate of industry Industry P/E ratio 14% 13% 26Step by Step Solution
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