whats it worthroe = 13.7%bookvalue = 1.91growth rate for the...

whats it worth

roe = 13.7%
bookvalue = 1.91
growth rate for the growth period = 13.7%
growth rate for the no growth period = 10%
discount rate = 15%

Growth period

year 1 . 261 .226
year 2 .296 .257
year 3 .336 .292
year 4 .382 .332
year 5 .434 .377

value for the growth period $1.48

No growth period
.493 / .10 = 4.93

discounted 15%
value for the no growth period = $4.29

intrinsic value = $5.77

price = $1.85

should price = value this company will return 211%

not a bad little earner!!!!