LR stock expects earnings per share of R5 and dividends of R3 per share. The expected ROE is 12% per year with a required rate of return of 10%.
Calculate the expected growth rate.
Calculate the intrinsic value of the LR stock.
Calculate the Price Earnings ratio.

Answer rating: 100% (QA)

Calculation of Expected Growth Rate The expected growth rate can be calculated using the following f... View the full answer