This is my finqncial management assignment. Is due date on friday 1st feb at 12 pm.

Question

Mohammad Wasif · Accepted Answer

Part A
Millennium Tutoring earned $1.50 per share in the year just adjusted.
There is consensus that a fair rate of return to investors for this common stock is 12%.
That management expects to consistently earn a 13% return on the book value of equity (ROE=13%)
a) The company should use Zero Growth Model to value its stock.
Zero Growth Model is used because the company has declared 100% of earnings as dividend
Using this model,
i.e. $12.5 per common share.

This is my finqncial management assignment. Is due date on friday 1st feb at 12 pm.

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