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Estimate the stock price/share of your firm using the Ohlson Model. There should be 9 terms: 7 EVA (abnormal earnings) terms, plus book value/share, plus
Estimate the stock price/share of your firm using the Ohlson Model. There should be 9 terms: 7 EVA (abnormal earnings) terms, plus book value/share, plus a terminal value (TV). The 2 analysts forecasts are 0.29 and 0.48. The Estimated 5-year earnings growth rate is 13%. The dividend payout ratio is .26. The net book value/share is 2.63. Beta is equal to .85 The cost of equity capital (Re) using CAPM is 10.56%.
Any help on how to calculate this would be appreciated.
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