A Chinese company EFG's sales per share is expected to be RMB100 next year. Its sales are
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Question:
ABC is expected to have a profit margin of 10%, an ROE of 18%, and a cost of equity of 15% over the next five years. After five years, due to heightened competition, ABC is expected to have a profit margin of 8%, an ROE of 15%, and a cost of equity of 12%.
What is the intrinsic value of ABC's share?
Related Book For
Finance for Executives Managing for Value Creation
ISBN: 978-0538751346
4th edition
Authors: Gabriel Hawawini, Claude Viallet
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