Uploaded by brian.serut

Forecasting Revision

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QUESTION ONE
The following information has been collected regarding Bee Company:
Most recent annual cash dividend is sh 0.90; Dividend growth rate over the past five years is
9%; Most recent earnings per share is sh1.65; Average P/E ratio of similar firms is 20;
Required rate of return on equity capital is 15%.
The estimated price per share for Bee Company using the price-earnings multiple equity
valuation model is ________________
QUESTION TWO
The following information has been collected regarding Bee Company:
Most recent annual cash dividend is sh 0.90; Dividend growth rate over the past five years is
9%; Most recent earnings per share is sh1.65; Average P/E ratio of similar firms is 20;
Required rate of return on equity capital is 15%.
The estimated price per share for Bee Company using the constant future dividends equity
valuation model is ________________
QUESTION THREE
The following information has been collected regarding Bee Company:
Most recent annual cash dividend is sh 0.90; Dividend growth rate over the past five years is
9%; Most recent earnings per share is sh1.65; Average P/E ratio of similar firms is 20;
Required rate of return on equity capital is 15%.
The estimated price per share for Bee Company using the constant dividends growth equity
valuation model is ________________
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