Satyam Ltd. has a WACC of 5%. The sustainable growth rate of the company is 3%. The stock is trading at the price of Rs. 40 in the market. Assuming the markets are efficient, what should be earnings per share of the fiscal year just ended?
As per Gordon Growth Model Let earning for this year be E Price = Earning for next year / (WACC – growth rate) 40 = E*(1+0.03) / (5% - 3%) 0.8 / 1.03 = E E = 0.77
Act of Mating in sheep is known as -
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