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You have estimated a companys cost of equity and made earnings and dividend forecasts: Cost of equity 10% Current book value of equity per share
You have estimated a companys cost of equity and made earnings and dividend forecasts:
Cost of equity | 10% |
Current book value of equity per share | $10 |
Expected price to book ratio in 1 years | 4.4 |
Year | 1 |
|
|
EPS | 8 |
DPS | 4 |
Based on this information, what is the present value of this investments continuing value, calculated using the expected price to book ratio in 1 year?
Less than 58 | ||
Between 58 and 60 | ||
Between 60 and 62 | ||
Between 62 and 64 | ||
More than 64 |
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