Stock Valuation at Rogan Thermal System case analysis
- 최초 등록일
- 2009.05.29
- 최종 저작일
- 2008.11
- 4페이지/ 한컴오피스
- 가격 3,500원
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Stock Valuation at Rogan Thermal System case analysis
본문내용 1. Assuming the company continues its current growth rate, what is the value per share of the company’s stock?
There are several information we can get from the case to solve question 1.
1. EPS(Earnings per share) = $4.32
2. Total dividend paid by company = $108,000
3. ROE(Return on equity) = 25%
4. Required return = 20%
5. shares of stock = 100.000
Firstly, in order to solve this problem, we should remember the dividend equation for constant growth (growing perpetuity)
2. To verify their calculations, Carrington and Genevieve have hired Josh Schlessman as a consult. Josh was previously an equity analyst, and he has covered the HVAC industry. Josh has examined the company’s Financial statements as well as those of it’s competitions. Rogan’s competitors are investigating other methods to improve effiency.
목차
1. Assuming the company continues its current growth rate, what is the value per share of the company`s stock?
2. To verify their calculations, ~ Under Josh`s assumptions, what is the estimated stock price?
3. What is the industry average price-earnings ratio?
본문내용
1. Assuming the company continues its current growth rate, what is the value per share of the company`s stock?
There are several information we can get from the case to solve question 1.
1) EPS(Earnings per share) last year = $4.32
2) Total dividend paid by company last year = $108,000
3) ROE(Return on equity) = 25%
4) Required return = 20%
5) shares of outstanding stock = 100.000
Firstly, in order to solve this problem, we should remember the dividend equation for constant growth (growing perpetuity)
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