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You are analyzing the shares of Gotta Dance Corporation to determine whether your fund should add their shares to the po
Posted: Wed Mar 16, 2022 9:11 am
by answerhappygod
- You Are Analyzing The Shares Of Gotta Dance Corporation To Determine Whether Your Fund Should Add Their Shares To The Po 1 (57.36 KiB) Viewed 40 times
You are analyzing the shares of Gotta Dance Corporation to determine whether your fund should add their shares to the portfolio. The following information is the result of your analysis: Beta Risk-free rate Market risk premium Current dividend 1.36 1.8% 7.0% $ 7.00 You have modelled three potential scenarios for the short-term and long-term growth of Gotta Dance going forward: Supernormal growth Growth period Long-term growth Best 12.0% 5 years 2.5% Baseline 9.0% 3 years 2.0% Worst 4.0% 2 years 1.2% Assuming the best/baseline/worst case scenario probabilities to have a 20% / 60% / 20% distribution, what is your estimate for the share value?