Return on equity = net income/book value of equity
= 1341300/10497500
= 12.78%
Growth rate = return on equity*(1-payout ratio)
= 12.78%(1-42.5%)
= 7.35%
Retaining a higher percentage of earnings will result in higher growth rate
Robert Gillman, an equity research analyst at Gillman Advisors, believes in efficient markets. He has been...
Robert Gillman, an equity research analyst at Gillman Advisors, believes in efficient markets. He has been following the mining industry for the past 10 years and needs to determine the constant growth rate that he should use while valuing Pan Asia Mining Co. Robert has the following information available: • Pan Asia Mining Co.'s stock (Ticker: PAMC) is trading at $13.75. • The company's stock is expected to pay a year-end dividend of $0.66 that is expected to grow at...
Robert Gillman, an equity research analyst at Gillman Advisors, believes in efficient markets. He has been following the mining industry for the past 10 years and needs to determine the constant-growth rate that he should use while valuing Pan Asia Mining Co. Robert has the following information available: • Pan Asia Mining Co’s stock (Ticker: PAMC) is trading at $13.75. • The company’s stock is expected to pay a year-end dividend of $0.66 that is expected to grow at a...
HV 08 - SLOURS DU Tre ValuDLUI Robert Gillman, an equity research analyst at Gillman Advisors, believes in efficient markets. He has been following the mining industry for the past 10 years and needs to determine the constant-growth rate that he should use while valuing Pan Asia Mining Co. Robert has the following information available: • Pan Asia Mining Co.'s stock (Ticker: PAMC) is trading at $20.00. • The company has forecasted net income and book value of equity for...
7. Constant growth rates One of the most important components of stock valuation is a firm's estimated growth rate. Financial statements provide the information needed to estimate the growth rate. Consider this case: Robert Gillman, an equity research analyst at Gillman Advisors, believes in efficient markets. He has been following the mining industry for the past 10 years and needs to determine the constant growth rate that he should use while valuing Pan Asia Mining Co. Robert has the following...
Chapter 9 problem set Robert Gillman, an equity research analyst at Gillman Advisors, believes in effident markets. He has been following the mining Industry for the past 10 years and needs to determine the constant growth rate that he should use while valuing Pan Asia Mining Co. Robert has the following information available: • Pan Asia Mining Co.'s stock (Ticker: PAMC) is trading at $18.75. • The company's stock is expected to pay a year-end dividend of $0.90 that is...
an equity research analyst at MSU advisors, believes in efficient markets. He has been following the mining industry for the past 10 years and needs to determine the constant growth rate that he should use while valuing Pan Asia Mining Co. Alex has the following information available: Pan Asia Mining Co,’s (Ticker: PAMC) stock is trading at $22.5 The company has forecasted net income and book value of equity for the coming year to be $1,420,200 and $11,115,000, respectively. The...
5. Constant-growth rates One of the most important components of stock valuation is a firm's estimated growth rate. Financial statements provide the information needed to estimate the growth rate. Consider this case: Robert Gillman, an equity research analyst at Gillman Advisors, believes in efficient markets. He has been following the mining industry for the past 10 years and needs to determine the constant-growth rate that he should use while valuing Pan Asia Mining Co. Robert has the following information available:...
7. Constant-growth rates Aa Aa One of the most important components of stock valuation is a firm's estimated growth rate. Financial statements provide the information needed to estimate the growth rate. Consider this case: Robert Gillman, an equity research analyst at Gillman Advisors, believes in efficient markets. He has been following the mining industry for the past 10 years and needs to determine the constant-growth rate that he should use while valuing Pan Asia Mining Co. Robert has the following...
One of the most important components of stock valuation is a firm's estimated growth rate. Financial statements provide the information needed to estimate the growth rate. Consider this case: Robert Gillman, an equity research analyst at Gillman Advisors, believes in efficient markets. He has been following the mining industry for the past 10 years and needs to determine the constant growth rate that he should use while valuing Pan Asia Mining Co. Robert has the following information available: • Pan...
page may not function Correctly. Cick here to learn more. 7. Constant-growth rates Aа Аа One of the most important components of stock valuation is a firm's estimated qrowth rate. Financial statements provide the information needed to estimate the growth rate. Consider this case: Robert Gillman, an equity research analyst at Gillman Advisors, believes in efficient markets. He has been following the mining industry for the past 10 years and needs to determine the constant-growth rate that he should use...