EPS9.14510.791112.7335 15.02553DPS 0.91451.079111.27335 1.502553Terminal valuePresent value0.831364 0.891826 0.956687 1.026264Value per share$ 159.43 The Gersin Gear Company is considering going public and is trying to determine its value bacurrent EPS is $7.75, and over the next 5 years they anticipate a payout ratio of 10% and ROtheir beta is estimated at 1.25, with a risk-free rate of 2.5% and a marker risk premium of period, they estimate their stable beta will be 1.00, with ROE of 12% and growth of 3%. (Riremain the same.) Using this information, determine the per-share va
Year 5 Year 6 17.73012 18.26203 1.773012 13.69652 249.0276 155.7275 ased on its future dividend payments. Their OE of 20%. During this high-growth period, 6%. At the end of the 5-year high growth isk-free rate and market risk premium will alue for the company.
Changes in net working capital613.333333 752.3556 922.8895 1132.078 1388.682The Gossman Guitar Company is trying to determine the current value its equity. As of its lof $2,500, with after-tax cash earnings of $120. The book value of its equity was $10,500 w$2,500, depreciation was $1,250, change in working capital was $500, and the cash flow frrisk-free rate of 3%, a beta of 1.4 and a risk premium of 5%. After a 5-year high growth percost of equity will remain the same. Given this information, what is the equity va
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- Fall '16
- Finance, Financial Ratio, Generally Accepted Accounting Principles, Dividend yield