Absolute Valuation 1. INV Design Ltd just paid a dividend of $4, and its earnings per share
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Absolute Valuation 1. INV Design Ltd just paid a dividend of $4, and its earnings per share was $6. The Net Income margin is 15%, Asset Turnover is 1.25 and Debt-to-Equity is 0.6. The appropriate rate of return on INV is 30%.
a) Calculate the current share price using the Dividend Discount Model
b) Calculate the PE ratio of INV using historic trailing 12 months earnings.
Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
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