Investment class- Company analysis –


Company analysis      

Find a high technology company. AAPL, MSFT, or some other high technology company. Find out P price per share, the E earnings per share, R the ROE, the r CAPM opportunity cost of capital, and solve for n, the number of years in which the market projects that ROE will remain at that level. Show your computation.

Better if you chose a company with no dividend payments. But you could us the alternative formula designed or companies which are currently paying dividends and solve for n.

Is it 10 years? Is it 25 years? Is it only 5 years?

If the company is currently paying dividends, you must use the alternative formula.