Damai Bhd's expected earnings after taxes is RM300 million. The current market price of its common...
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Damai Bhd's expected earnings after taxes is RM300 million. The current market price of its common stock is RM5.00 per share. At present the company has 500 million shares outstanding and a PE ratio of 10. i. Calculate the intrinsic value of Damai Bhd's common stock. ii. Would you buy the share at its current price? Why? (3 marks) (2 marks) Damai Bhd's expected earnings after taxes is RM300 million. The current market price of its common stock is RM5.00 per share. At present the company has 500 million shares outstanding and a PE ratio of 10. i. Calculate the intrinsic value of Damai Bhd's common stock. ii. Would you buy the share at its current price? Why? (3 marks) (2 marks)
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i To calculate the intrinsic value of Damai Bhds common stock we need to use the following formula I... View the full answer
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