Question
For the company you chose in Part 1, use concepts learned about present value to estimate a value of the company's stock. See P7-3in Week
For the company you chose in Part 1, use concepts learned about present value to estimate a value of the company's stock. See P7-3in Week 3's Homework to get an idea of what you should do, as well as my posted example. Note that you will need to estimate the appropriate cost of capital or discount ratefor your analysis based on the firms risk, based on its industry and individual characteristics.You will also need to estimate a growth rate for the firm's Dividend,as well as finding what Dividend they have been paying (perhaps past Dividend history can help in estimating a growth rate). Once you estimate the Stock price, compare it to the actual stock price from current markets.
-rate of return
-growth rate on dividends
COMPANY: Etsy, inc.
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