Calculate the roe of the company

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Fleury Security Limited (FSL) is projected to have earnings per share (EPS) of $3.50 next year, and the firm's dividends are 30% of earnings. Investors have a required return on FSL shares of 12.4%. The company has a profit margin of 10%, total asset turnover of 0.9, and total debt ratio of 0.4.

a) Calculate the ROE of the company.

b) Calculate the price of FSL shares.

c) How much of that price is due to future growth opportunities?

Reference no: EM132689588

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