question archive Valuation Example 3: Value at the end of 2019 known and solve for cost of equity
Valuation Example 3: Value at the end of 2019 known and solve for cost of equity
Subject:FinancePrice: Bought3
Valuation Example 3: Value at the end of 2019 known and solve for cost of equity.
Current Book Value of Equity (end of 2019) = $100,000,000.
Shares outstanding = 8,000,000. Current market price per share = $52.00.
Residual Income 2020 = 18,000,000. Perpetual growth rate = 4.0%.
Solve for the Equity Cost of Capital.
