In March 2021, XYZ Corporation traded at $35 per share on a book value of $60 per share. Analysts were estimating that XYZ would earn $1.10 per share for the year ending December 2021. The firm was paying an annual dividend at the time of $3.00 per share. Calculate the return on common equity (ROCE) that analysts were forecasting for 2021.

In March 2021, XYZ Corporation traded at $35 per share on a book value of $60 per share. Analysts were estimating that XYZ would earn $1.10 per share for the year ending December 2021. The firm was paying an annual dividend at the time of $3.00 per share. Calculate the return on common equity (ROCE) that analysts were forecasting for 2021.

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

10th Edition

ISBN:9781337902571

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter10: The Cost Of Capital

Section: Chapter Questions

Problem 21SP: CALCULATING THE WACC Here is the condensed 2019 balance sheet for Skye Computer Company (in...

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