Chartered Financial Analyst Level 2
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82 An analyst gathers the following information about a company:
Item Year 1 Year 2 Cost of equity 8.5% --- Book value per share at beginning of Year 1 €25.50 --- P/B ratio at end of Year 2 1.5× --- EPS --- €5.10 Dividend per share --- €1.25
Using a multi-stage residual income model, the per share value of the company's stock is closest to:
82 An analyst gathers the following information about a company:
| Item | Year 1 | Year 2 |
|---|---|---|
| Cost of equity | 8.5% | --- |
| Book value per share at beginning of Year 1 | €25.50 | --- |
| P/B ratio at end of Year 2 | 1.5× | --- |
| EPS | --- | €5.10 |
| Dividend per share | --- | €1.25 |
Using a multi-stage residual income model, the per share value of the company's stock is closest to:
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