What is your estimate to the terminal value

Assignment Help Financial Accounting

Reference no: EM132792402

Question - InVideo Inc. paid $5 million in dividends this year. Earnings are expected to grow by 15% each year for the next 5 years and 3% thereafter. Shareholders require a return of 12%.

a) What is your estimate to the Terminal Value (TV) at the end of year five?

b) What is your estimate to the intrinsic value (Fair Value) of equity?

c) If there are 15 million shares outstanding, what is your estimate to the price per share?

Reference no: EM132792402

Questions Cloud

How much would accept now in exchange : You will receive $1,000 at the end of 10 years. How much would you accept now in exchange for your right to receive $1,000 at the end of 10 years?

Explain a new technology that the business should deploy : Explain a new technology that the business should deploy. Be specific, don't only note the type of technology but the specific instance of technology.

What are four goals of psychology : What are four goals of psychology? Give a real-life example for each goal.

Which would typically be an advantage for a larger company : Which would typically be an advantage for a larger company but could be a disadvantage for this company from the current owners' perspective?

What is your estimate to the terminal value : Earnings are expected to grow by 15% each year for the next 5 years and 3% thereafter. What is your estimate to the Terminal Value

What are the beta coefficients of the two securities : What are the beta coefficients of the two securities? Which stock is more risky? What are the expected returns of the two securities?

Consequences of depression in the elderly : -How would one know if an elderly relative had clinical depression or was sad because of specific life changes and losses?

What amount should be reported as basic earnings per share : Flamingo Company had 500,000 ordinary shares issued and outstanding, What amount should be reported as basic earnings per share

Prepare journal entries to record the barnett company : Prepare journal entries to record The Barnett Company's transactions. (Assume 365 days in a year. Round your answers to 2 decimal places.)

User Account

All Pages