Question
In the short term, the value of a public company is often determined by, while over the longer term, the value of a public company
In the short term, the value of a public company is often determined by, while over the longer term, the value of a public company if typically determined by . Select the correct pair of answers below to fill in the blanks.
Group of answer choices
Its assets; Its historical profits
Supply versus demand for its stock; Expectation of future earnings
Number of employees; Political environment
Its intellectual property; Its total assets
6 month treasury bill yield; 10 treasury year bond interest rate
Given the following forecast earnings for a new venture = year 1 = (-$1 mil), year 2 = (0), year 3 = $1 million, year 4 = $5 million, year 5 = $10 million, and the Investors ror = 50%; and industry PE = 10, determine the present value of the company that includes its terminal value.
Group of answer choices
$110 Million
$30.2 Million
$15.1 Million
$21.9 million
0
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