Intrinsic val equity val intrinshare 69529 52762

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Unformatted text preview: 1.35 1.47 1.59 1.72 1.86 2.01 2.16 2.34 2.52 2.71 66.54 69.46 Price = 22. The solutions derived from Spreadsheet 13.2 are as follows: a. Intrinsic val Equity val Intrin/share 73,759 56,058 54,759 56,058 30.25 30.97 b. Intrinsic val Equity val Intrin/share 69,383 52,638 50,383 52,638 27.84 29.08 13-6 $20.07 C hapter 13 - E quity Valuation c. Intrinsic val Equity val Intrin/share 69,529 52,762 50,529 52,762 27.92 29.15 23. a. g = 10% P0 = b. D (1 + g) $0.50 × 1.10 D1 =0 = = $11 k−g k−g 0.15 − 0.10 Time 0 1 2 EPS $1.0000 $1.1000 $1.2100 3 $1.2826 Dividend Comment $0.5000 $0.5500 g = 10%, plowback = 0.50 $0.7260 EPS has grown by 10% based on last year’s earnings plowback and ROE; this year’s earnings plowback ratio now falls to 0.40 and payout ratio = 0.60 $0.7696 EPS grows by (0.4) (15%) = 6% and payout ratio =...
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This note was uploaded on 12/13/2011 for the course MANAGEMENT 103 taught by Professor Mr.singh during the Spring '11 term at Aristotle University of Thessaloniki.

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