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Turning Point Company is looking to Value it's share price under 2 circumstances. Under the normal circumstance, investors have a required rate of return of
Turning Point Company is looking to Value it's share price under 2 circumstances. Under the "normal" circumstance, investors have a required rate of return of 12%, the company paid a divdend just now of $2.50 and is expected to have normal growth of 11% per year. Under the Rapid Growth circumstance, the company will grow at 20% for 4 years, then move to a normal growth of 10% per year into perpetuity. (hint use FAME addin or use execel to lay out cash flows). Rate of return remains at 12% What is the value of the stock of Turning Point under both circumstances
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