Question: ROE = 350%, Dividends = 50, NI expected for next year 120 million, market value of its equity is 680 million Rs. Shareholders require a

ROE = 350%, Dividends = 50, NI expected for next year 120 million, market value of its equity is 680 million Rs. Shareholders require a Beta of 1.2 from share of this Co , Rf is 5%, Rm is 10% which was estimated using CAPM. Find: growth rate g; Tangible PE, franchise factor, growth factor, franchise PE, and intrinsic Leading PE, Actual Leading PE ratio, your verdict about over or under valuation.

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