Estimate the value of a share of stock

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1) For the current year (year 0), revenues are $1,245 million. Revenues are expected to grow at 8% in year 1, 10% in year 2, and 5% in year 3. If net income is expected to be 14% of revenue, what is the expected net income in year 3?

2) Estimate the value of a share of stock given the following information: a forward PE ratio of 12, current (year 0) EPS of $1 and analyst expected EPS of $1.1 next year.

Reference no: EM13323818

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