Question
I'm having trouble calculating my high end and low end in my finance assignment. My company is Target and I'm supposed to use the past
I'm having trouble calculating my high end and low end in my finance assignment. My company is Target and I'm supposed to use the past 3 years' average growth rate (3.38%) to calculate the high-end. And then use the average of 5 years (5.53%) and 10 years (15.02%) for the low end which would be (10.28). The problem is the low end is higher than the high end. Since the discount rate is 10%, I cant subtract it from 10.28 because then ill get a negative number for the stock price. the formula would be
price= D(1+g)/r-g
Year Growth % per year (g)
6/2020 2.36
6/2019 3.25
6/2018 4.24
6/2017 7.27
6/2016 10.55
6/2015 20.61
6/2014 19.57
6/2013 20
6/2012 25
6/2011 37.31
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Management Accounting
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu
6th Canadian edition
013257084X, 1846589207, 978-0132570848
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