2. Assume the following information: Constant long-term growth rate Constant long-term ROE 9.5% 13% Current market price Book value per share Cost of equity What is the intrinsic value per share of the equity? $150.70 $55.81 11%

Foundations of Business - Standalone book (MindTap Course List)
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ISBN:9781285193946
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Chapter15: Using Management And Accounting Information
Section: Chapter Questions
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2. Assume the following information:
Constant long-term growth rate
Constant long-term ROE
Current market price
Book value per share
Cost of equity
What is the intrinsic value per share of the equity?
9.5%
13%
$150.70
$55.81
11%
Transcribed Image Text:2. Assume the following information: Constant long-term growth rate Constant long-term ROE Current market price Book value per share Cost of equity What is the intrinsic value per share of the equity? 9.5% 13% $150.70 $55.81 11%
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