Following is the forecast of Tintin Company (FY2021 – 2023)? EPS is Earnings per Share, DPS denoted Dividends per Share and BPS is Book value per Share. 2020A 2021E 2021E 2023E EPS 3.96 4.28 4.66 DPS 0.84 0.88 0.88 BPS 5.10 8.22 11.62 15.40 RE (10.0%) 3.45 3.46 3.50 Assume residual earnings estimate at forecast horizon will continue to grow at a constant rate into the future, calculate the implied growth rate, g, in the market price per share of $115.97 at the end of 2020. Assume the cost of capital to be 10%
Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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