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9. Explain to your boss why the estimates from the two valuation methods differ. Specifically, address the assumptions implicit in the models themselves as well
9. Explain to your boss why the estimates from the two valuation methods differ. Specifically, address the assumptions implicit in the models themselves as well as those you made in preparing your analysis. Why do these estimates differ from the actual stock price of Columbia?
My guess is why it is different is because we had to make sure assumptions of the WACC (11%) and the tax rate which we made to 21%. (Is that correct?)
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