Question
Please be detailed in your answers. A big determinant of continuing value is the estimate of the sustained growth rate in perpetuity and the cost
Please be detailed in your answers.
A big determinant of continuing value is the estimate of the sustained growth rate in perpetuity and the cost of capital. Although we have not discussed the cost of capital yet (it is the next chapter) what is your gut or nave estimate of the cost of capital for Chipotle and why? In additions what is you educated guess at the perpetual grow rate for Chipotle and why?
According to Yahoo Finance Chipotle has a beta of .42 (at the time of writing). Do you believe this number is too low or too high (and why)?
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Law, Business And Society
Authors: Tony McAdams, Kiren Dosanjh Zucker, Kristofer Neslund, Kari Smoker
12th Edition
1259721884, 978-1259721885
