Uber inc. is launching on the company whose shares are currently. It is currently trading at $15/share while.

projects that,

• sales will grow by 20% per year for the next 2 years from its current level of $10MM annually, then settle at a constant rate of 6% from year 3 onwards.
• variable cost is at 60% of sales and fixed cost is a constant $1.5MM per year
• depreciation is a constant $800,000 per year

The share price offered based on your analysis is:

Answer rating: 100% (QA)

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