The following formula is of ten used to value shares, where Earn, is forward earnings, r is the cost of
Value of equity = Eam1/r – g
Explain why this formula can lead to errors.
This problem has been solved!
Do you need an answer to a question different from the above? Ask your question!
Step by Step Answer:
Create a free account to access the answer
Cannot find your solution?
Post a FREE question now and get an answer within minutes. * Average response time.
Question Posted: March 17, 2012 06:17:06