Page 42 - FINAL CFA I SLIDES JUNE 2019 DAY 12
P. 42

Session Unit 14:
                                                                  47. Overview of Security Markets




        LOS 47.h: Compare a company’s cost of equity, its (accounting) return on equity,
        and investors’ required rates of return.

                                                                     Example: ROE, market, and book value of equity calculations: Given
                                                                     the figures below for O’Grady Industries, calculate the return on average
                                                                     equity for 20X9 and the total market value of equity, the book value per
                                                                     share, and the price-to-book ratio at the end of 20X9.




                                                         tanties









                                                                                                                      And Ke?
   37   38   39   40   41   42   43   44   45   46   47