Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What are the value of ROE/RR in ROE X RR and Historical g Terminal ROE -------------) ? ? Terminal RR -------------) ? ? ROE X

What are the value of ROE/RR in ROE X RR and Historical g

Terminal ROE

-------------) ? ?
Terminal RR -------------) ? ?

ROE X RR HISTORICAL G
D0 1.84 1.84
EPS 8.12%
BETA 1.03 1.03
ROE 44.49%
RR (retention ratio) 44.00%
HISTORICAL G 18.38
LT GOVT YIELD 2.75 2.75
ERP 8.23 8.23
Rquired Return 12.25% 12.25%
Initial Growth Estimate 19.58% 19.58%
Terminal ROE -------------) ? ?
Terminal RR -------------) ? ?
Terminal Growth Estimate 7.31% 7.31%

I need help to complete missing information here

ROPE 1 2 3 4 5 6 7 8 9 10
ROE
RR
Growth Rate
EPS 35.174 34.36 33.538 32.72 31.902 31.08 30.266 29.45 28.63 27.81
Dividend 1.92 2 2.02 2.1 2.2 2.36 2.54 3.42 4.1 4.44
Terminal Value 65.97
Cash Flow to Eg 1.92 2 2.02 2.1 2.2 2.36 2.54 3.42 70.07
P0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Markets And Institutions

Authors: Jeff Madura

5th Edition

0324027443, 9780324027440

More Books

Students also viewed these Finance questions

Question

Min jee started to create named ranges

Answered: 1 week ago