What must alphabet earn on average over next five years

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Reference no: EM133910169

Problem

Alphabet Inc., formerly Google Inc. recently had a market cap of $852.83 billion, total equity of $192.19 billion, and 693.4 million shares outstanding. At about the same time, the PB of Facebook and eBay Inc. were 6.11 and 8.245, respectively. Assume that we desire a minimum 10% annual return on our investments, and that we believe Alphabet will sell at 6.0 times book value five years from now. Get the instant assignment help. What must Alphabet earn (ROE) on average over the next 5 years to make it a worthwhile investment?

Reference no: EM133910169

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