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they are using online sources ie. capital iq H A B D E F G 1 Use the residual income model to value Stryker Corporation
they are using online sources ie. capital iq
H A B D E F G 1 Use the residual income model to value Stryker Corporation (NYSE:SYK) stock. Forecast 2 perpetual growth in residual income at a rate of your choosing. 3 4 Market return 5 Risk-free rate 5 Beta 0.96 7 Cost of equity 3 3 2020 2021 2022 2023 0 9.12 10.19 11.24 1 BV per share 2 Residual income Average 3 % change 4 5 PV (2021) of horizon RI 6 PV (2023) of terminal RI 7 PV (2021) of terminal RI 8 PV (2021) of all RI 9 O Valuation 1 2. What growth rate did you choose? Why? Did you have to revise your estimate to arrive at a 3 reasonable valuation? What else would help you refine your valuation? 4 5 6 7 8 9 -0 1 -2 3 H A B D E F G 1 Use the residual income model to value Stryker Corporation (NYSE:SYK) stock. Forecast 2 perpetual growth in residual income at a rate of your choosing. 3 4 Market return 5 Risk-free rate 5 Beta 0.96 7 Cost of equity 3 3 2020 2021 2022 2023 0 9.12 10.19 11.24 1 BV per share 2 Residual income Average 3 % change 4 5 PV (2021) of horizon RI 6 PV (2023) of terminal RI 7 PV (2021) of terminal RI 8 PV (2021) of all RI 9 O Valuation 1 2. What growth rate did you choose? Why? Did you have to revise your estimate to arrive at a 3 reasonable valuation? What else would help you refine your valuation? 4 5 6 7 8 9 -0 1 -2 3Step by Step Solution
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