Foodsco Incorporated (FI), a leading distributor of food products and materials to restaurants and other institutions, has
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Foodsco Incorporated (FI), a leading distributor of food products and materials to restaurants and other institutions, has a remarkably steady track record in terms of both return on equity and growth. At year - end 2007, FI had a book value of $ 30 per share. For the foreseeable future, the company is expected to achieve an ROE of 15 percent (on trailing book value) and to pay out one - third of its earnings in dividends. The required return is 12 percent. Forecast FI ’ s residual income for the year ending 31 December 2012.
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Related Book For
Equity Asset Valuation
ISBN: 978-0470571439
2nd Edition
Authors: Jerald E. Pinto, Elaine Henry, Thomas R. Robinson, John D. Stowe, Abby Cohen
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