Question: lily gathers the following information about a company : number of shares outstanding : 1 million shares net income: rm 3 million dividend paid last
lily gathers the following information about a company :
number of shares outstanding : 1 million shares
net income: rm 3 million
dividend paid last year : rm 2 million
company's equity book value : rm 15 million
beta : 1.3
risk free rate: 5 %
expected return of KLCI : 12 %
10-years average P/B ratio: 2.1 times
a) determine the company's share intrinsic value using constant growth dividend discount model(DDM)
B) Determine the company's share intrinsic value using comparable price to book (P/B) mthods.
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