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Hi there, Please calculate the estimated share price using this formula: [DPS i.e, Do * Growth Rate/(Required Rate of Return - Growth rate)] . Scenario:

Hi there, Please calculate the estimated share price using this formula: [DPS i.e, Do * Growth Rate/(Required Rate of Return - Growth rate)] . Scenario: Kathy believes that Tech 1 technological advantage will only last for 5 years, after this period it is likely to slow down to the industry average and so the industry average required return will be a more appropriate rate for valuation. Tech 1: EPS= 0.35, Return on equity = 18%, required rate of return is 14%, share price is 3.31 per share, growth rate is 7.20%, dividend per share is 0.21. The other competitors required rate of returm is 7.75, 9.25, 9.00, 8.75%. Please calculate the estimated share price and show working. I and other classmates tried to calculate and we got $5.52 and 4.98 and 5.92 so not sure if we are wrong or who is right. Also calculate what is the current industry average price- earnings ratio using the estimation that you have calculated (esp) calculate tech 1 price earning ratio. Thank you in advance!

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