Question
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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Market Regulations And Finance
Authors: Ratan Khasnabis, Indrani Chakraborty
2014th Edition
8132217942, 978-8132217947
