Determine the per-share value for the company

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The Gersin Botanical Gardens is considering going public and is trying to determine its value based on its future dividend payments. Their current EPS is $19.00, and over the next 6 years they anticipate a payout ratio of 15% and ROE of 15%. During this high-growth period, their betais estimated at 1.15, with a risk-free rate of 1.0% and a market risk premium of 3%. At the end of the 6-year high growth period, they estimate their stable beta will be 1.00, with ROE of 13% andgrowth of 2.0%. (Risk-free rate and market risk premium will remain the same.) Using this information, determine the per-share value for the company.

Reference no: EM133121256

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