In April 2005, General Motors traded at $28 per share on a book value of $49 per share. Analysts were estimating that GM would earn 69 cents per share for the year ending December 2005. The firm was paying an annual dividend at the time of $2.00 per share. Calculate the return on common equity (ROCE) that analysts were forecasting for 2005.
In April 2005, General Motors traded at $28 per share on a book value of $49 per share. Analysts were estimating that GM would earn 69 cents per share for the year ending December 2005. The firm was paying an annual dividend at the time of $2.00 per share. Calculate the return on common equity (ROCE) that analysts were forecasting for 2005.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 2MAD
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