In March 2023, Tech Solutions Inc. traded at $45 per share on a book value of $62 per share. Analysts were estimating that Tech Solutions would earn $3.10 per share for the year ending December 2023. The firm was paying an annual dividend of $1.50 per share. Calculate the return on common equity (ROCE) that analysts were forecasting for 2023.

In March 2023, Tech Solutions Inc. traded at $45 per share on a book value of $62 per share. Analysts were estimating that Tech Solutions would earn $3.10 per share for the year ending December 2023. The firm was paying an annual dividend of $1.50 per share. Calculate the return on common equity (ROCE) that analysts were forecasting for 2023.

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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