Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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From the financial statements of Company A for the year 2022, we read the following
information: Book value of equity = $100 millions, Net income = $20 millions. Distributed
Cash dividend = $12 millions. There are 10 millions common shares of the company in
circulation. Answer the following questions, assuming the required return of 10%. What
would be its expected value at the end of 5 years, namely P5? a. 26.32 b. 15.62 c. 17.63 d
. 10.65
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Transcribed Image Text:From the financial statements of Company A for the year 2022, we read the following information: Book value of equity = $100 millions, Net income = $20 millions. Distributed Cash dividend = $12 millions. There are 10 millions common shares of the company in circulation. Answer the following questions, assuming the required return of 10%. What would be its expected value at the end of 5 years, namely P5? a. 26.32 b. 15.62 c. 17.63 d . 10.65
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