ABC Industries is a fast-growing company with earnings growth expected of 20% for the next 5 years. Given this you expec

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

ABC Industries is a fast-growing company with earnings growth expected of 20% for the next 5 years. Given this you expec

Post by answerhappygod »

ABC Industries is a fast-growing company with earnings growth
expected of 20% for the next 5 years. Given this you expect that
the company should be valued at 100% premium to the market
multiple, your estimate is that the market multiple will be 20x.
Given that your forecast for 2024 ESP is $10. What is your
valuation of the shares today if the required rate of return per
CAPM is 12%? Assume that it is the end of 2021 and that the company
does not pay a dividend
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Top
Post Reply

Return to “Archived Questions & Answers”