Abc inc made 100 net income per share last year and paid


ABC Inc. made $1.00 net income per share last year and paid out $.30 in dividend. The company had a book value (or equity) per share of $10. The required rate of return is 12% for the stock.

Questions;

What’s the company’s ROE?

What’s the residual income last year?

Calculate the stock price based on Residual Income Model.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Abc inc made 100 net income per share last year and paid
Reference No:- TGS02347094

Expected delivery within 24 Hours