An analyst gathers the following information about a company:
- Growth rate: 2.5%
- Cost of equity: 10%
- ROE: 12%
- Book value per share: $15
Using a single stage residual income model, the company's intrinsic value per share is closest to: | Chartered Financial Analyst Level 2 Quiz - LeetQuiz
Chartered Financial Analyst Level 2
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An analyst gathers the following information about a company:
Growth rate: 2.5%
Cost of equity: 10%
ROE: 12%
Book value per share: $15
Using a single stage residual income model, the company's intrinsic value per share is closest to: