After the fifth year roe is expected to decrease to 33


Flyers, Inc., just paid an EPS of $4.9 this year. Flyers is expected to maintain a retained earnings ratio of 50% and ROE of 5.5% for the next five years. After the fifth year, ROE is expected to decrease to 3.3%. Applying the cost of equity of 5.8% and the supernormal growth model, compute the intrinsic price of Flyers.

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Basic Computer Science: After the fifth year roe is expected to decrease to 33
Reference No:- TGS02939026

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