Case Study 2: Stock Valuation We are at the beginning of 2010 (to be more precise: today is January 18, 2010). Oil & Gas Ltd. considers launching an IPO ("Initial Public Offering"). After this IPO, there would be 50 mil. stocks on the market. For simplification, Oil & Gas Ltd. is assumed to have an infinite life. The CFO forecasts for Oil & Gas Ltd. the following total earnings for the next three years: Prof. Dr. Manfred Fruhwirth 3 WU Wien