You are analyzing the financials of a start-up tech company that has just completed its Series A funding round. The company has 10 million outstanding shares, and the investors in the funding round paid $5 per share. The company's current net income is $1 million, and it is expected to grow at a constant rate of 10% per year. The required rate of return is 12%. Assuming that the company's net income will continue to grow at the same rate in the future, what is the estimated intrinsic value of one share of the company's stock?

Answer rating: 100% (QA)

The detailed answer for the above question is provided below Step 1 Calculate the dividends per shar... View the full answer