1. What is the required rate of return for the common equity shareholders using CAPM? 2. Use the year-end 2020 data to compute the market-to-book ratio. 3. What is the implied value to book ratio?
1. What is the required rate of return for the common equity shareholders using CAPM? 2. Use the year-end 2020 data to compute the market-to-book ratio. 3. What is the implied value to book ratio?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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1. What is the required
2. Use the year-end 2020 data to compute the market-to-book ratio.
3. What is the implied value to book ratio?
Transcribed Image Text:National Company has the following information as of December 31, 2020:
No. of shares outstanding
Market capitalization
Price
Book value of common shareholder's equity
Current EPS - 2020
Forward EPS - 2021
Forward EPS - 2022
Earnings growth for 2023 to 2025
Dividend payout (of earnings)
Beta
Risk free rate
Market risk premium
Long run earnings growth for 2026 and beyond
850,000 shares
76,500,000
Php
Php
Php
Php
Php
Php
90 per share
25,450,000
10.00 per share
10.60 per share
11.236 per share
6%
30%
1.25
2.5%
7.0%
3.0%
Use 5 decimal places for the factors
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