Assume that a company with 1.000.000 shares has equity valued in 10.000.000. Suppose the company reached its maturity stage such that its ROE coincides with the required return on equity (rE = 10%), and it is expected that it will remain constant in the future. Determine the share price.

Answer rating: 100% (QA)

Calculating the Share Price Since the company is at its mat... View the full answer