Discuss the equity, Information indicates that a firm will

Discuss the equity

Reference no: EM131487794

Question: 1. Information indicates that a firm will earn a return on common equity above its cost of equity capital in all years in the future, but its shares trade below book value. Those shares must be mispriced?

2. A firm cannot maintain an ROCE less than the required return and stay in business indefinitely?

Reference no: EM131487794

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