Question
A company just recorded a profit of $8,750,000. Profits are expected to grow at 1.7% each year for the foreseeable future. Using a 8.9% discount
A company just recorded a profit of $8,750,000. Profits are expected to grow at 1.7% each year for the foreseeable future. Using a 8.9% discount rate, what is the value of this firms continuing operations today? Assuming this company has $2,300,000 in book equity, what is the value of this company? If there are 200,000 shareholders, what is the value of each share of stock?
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Operations And Supply Chain Management
Authors: F. Robert Jacobs, Richard Chase
14th Edition
287
