The market consensus is that supersmart corporation has roe


The market consensus is that SuperSmart Corporation has ROE = 16% and a beta of 1.25, and an expected earnings per share (E1) of $3.16. The market believes that Super Smart Corporation plans to maintain indefinitely its retention ratio (b) of 80%. The expected market return for the coming years is 13%, and risk free assets (10-year Treasury notes) are yielding 5%. (a) Find the intrinsic value estimate of SuperSmart stock according to the constant growth DDM . (b) Calculate the present value of growth opportunities.

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: The market consensus is that supersmart corporation has roe
Reference No:- TGS0601819

Expected delivery within 24 Hours