21 pwith growth pno growth pvgo where the growth part

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Unformatted text preview: uals (1 - payout ratio), where the payout ratio is the fraction of earnings paid out as dividends. The value of growth can be illustrated by dividing the current stock price into a non-growth part and a part related to growth. (21) PWith growth PNo growth  PVGO Where the growth part is referred to as the present value of growth opportunities (PVGO). Inserting the value of the no growth stock from (22) yields: (22) P0 EPS 1  PVGO r Please click the advert Firms in which PVGO is a substantial fraction of the current stock price are referred to as growth stocks, whereas firms in which PVGO is an insignificant fraction of the current stock prices are called income stocks. The financial industry needs a strong software platform That’s why we need you SimCorp is a leading provider of software solutions for the financial industry. We work together to reach a common goal: to help our clients succeed by providing a strong, scalable IT platform that enables growth, while mitigating risk and reducing cost...
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This note was uploaded on 10/26/2012 for the course 19 19 taught by Professor - during the Spring '12 term at Sunway University College.

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