Accountancy, asked by sobit12, 2 months ago

Firm Is Expected To Earn $8 Per Share. The Pay-out Ratio Is 60% And It Will Remain Sam If The ROE Of The Firm Is 25% And Required Rate Of Return On Equity Is 13%, Find The Prese Walue Of Growth Opportunities​

Answers

Answered by likitha728
3

Answer:

Hence, the present value of growth opportunity = $98.46 Computation of the present value of growth opportunity:- Growth rate = (1 - Payout ratio) x ROE

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