Problem 4-24, Growth-Tech

Principles of Corporate Finance

Brealey, Myers, and Allen

13th Edition

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Difficulty – Hard

Given a table of data including book equity, earnings per share, ROE, the payout ratio, dividends per share, and the dividend growth rate, estimate the stock value, the discounted value of P3, and PVGO. Finally, assume that competition will catch up with Growth-Tech: reestimate the stock value.

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