6- You work for an investment bank and are tasked to estimate the target price for the 2nd ranked firm in a new industry

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

6- You work for an investment bank and are tasked to estimate the target price for the 2nd ranked firm in a new industry

Post by answerhappygod »

6 You Work For An Investment Bank And Are Tasked To Estimate The Target Price For The 2nd Ranked Firm In A New Industry 1
6 You Work For An Investment Bank And Are Tasked To Estimate The Target Price For The 2nd Ranked Firm In A New Industry 1 (26.08 KiB) Viewed 45 times
6- You work for an investment bank and are tasked to estimate the target price for the 2nd ranked firm in a new industry. It has 12.8 million shares outstanding. The industry leader has valuation of 1420 million and is making profit while others are not. You estimate the following equation using historical data from a comparable start up industry. In MVi = a + a1 In MV1 + a2 Ranki + e where estimated a1 =0.7 and a2 = 1.12 Calculate pt for the company.
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”