qsuppose that the company starts with the book


Q. Suppose that the company starts with the book value each share of= 1000, its return on equity (ROE) is 15% for first five years also then it becomes 10% also last everlastingly.

a) Create the Excel spreadsheet to illustrate how book value each share, earning each share also dividends each share change over years. You may suppose any values for payout ratios also opportunity cost of capital.

b) Compute stock price each share. Find out the value of PVGO?

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Finance Basics: qsuppose that the company starts with the book
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