Calculate the intrinsic value and the P-E ratio of Siyavuma

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Question - Siyavuma Ltd, expects a Return on Equity (ROE) of 12%; and has decided to maintain its plowback/retention ratio of 0.5. Siyavuma Ltd is further expecting earnings per share (EPS) of R3.6 and company's investors expect a return of 16% on the stock. Calculate the intrinsic value and the P/E ratio of Siyavuma Ltd.

Reference no: EM133013269

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