Your task is to estimate equity value per share for
Company C.
- Earnings per share in year zero is $27.6.
- Company C pays dividends once per year at the end of
each year. The next dividend will be paid one year from
today.
- Retention rates and returns on
investment.
> In years 0 to 6, Company C is
projected to reinvest 72% of its earnings back into the firm. The
return on this investment is projected to...