8. (9 pts) Estimate the share price for a company that does not pay dividends, but has current earnings (most recent yea
Posted: Thu May 05, 2022 7:59 am
8. (9 pts) Estimate the share price for a company that does not
pay dividends, but has current earnings (most recent year) of
$2/share which are expected to grow at 12.5%/year for the coming 4
years, at which point the company will have a P/E ratio equal to
its peers of 22. Use a market capitalization rate of 10%.
pay dividends, but has current earnings (most recent year) of
$2/share which are expected to grow at 12.5%/year for the coming 4
years, at which point the company will have a P/E ratio equal to
its peers of 22. Use a market capitalization rate of 10%.