The current number of shares outstanding for BioGene is 23 million and its current PE ratio is 49. Assuming a yearly gro

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answerhappygod
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The current number of shares outstanding for BioGene is 23 million and its current PE ratio is 49. Assuming a yearly gro

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The current number of shares outstanding for BioGene is
23 million and its current PE ratio is 49. Assuming a yearly growth
in earnings of 50 per- cent for the next four years and a decline
in the PE ratio to 25, this implies a valuation of $962 million in
2022. Assume InterWebs earnings (after-tax profits) in 2022 are
$6.3 million as stated in their business plan. Assigning a PE ratio
of 50 of InterWeb in 2022, what will be their
valuation?
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