Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Companies similar to Google experience growth rates that exceed industry norms. 52 Assume that annual growth rates will be approximately 27.00% 53 over the next
| Companies similar to Google experience growth rates that exceed industry norms. | ||||
| 52 | Assume that annual growth rates will be approximately | 27.00% | ||
| 53 | over the next three years. | |||
| 54 | The current dividend amount is | $4.71 | ||
| 55 | The expected rate of return is | 19.35% | ||
| 56 | After yeart three, a constant growth rate is expected to be | 7.80% | ||
| 57 | What is the intrinsic value of a company with these metrics? | |||
| a. | Intrinsic Value of Variable Growth Stock = $99.68 | |
| b. | Intrinsic Value of Variable Growth Stock = $78.99 | |
| c. | Intrinsic Value of Variable Growth Stock = $86.99 | |
| d. | Intrinsic Value of Variable Growth Stock = $68.99 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
The Nurse Managers Guide To Budgeting And Finance
Authors: Al Rundio
2nd Edition
1940446589, 978-1940446585
