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Topic: Business
Number of pages / Number of words: 7 / 1750
Essay's paper body

The return on equity, "k", is found by dividing net income (exhibit 1) by book value (exhibit 2). G = b*k shows g = 8.14%.

Now to find the return on equity (ROE), I chose to add the average of the Dividend Growth and the Earnings Per Share Growth and use that as g. I decided that the Capital Gains Yield was much too low compared to the other values of "g" that I found and should be discarded from further calculations, considering it to be an outlier...


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G = b*k shows g = 8.14%.

Now to find the return on equity (ROE), I chose to add the average of the Dividend Growth and the Earnings Per Share Growth and use that as g. I decided that the Capital Gains Yield was much too low compared to the other values of "g" that I found and should be discarded from further calculations, considering it to be an outlier...


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