Estimate the value per share

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Assume that XYZ Company generated cash flows of $2.00 per share last year. XYZ's cost of capital is 12%. Estimate the value per share of XYZ for each of the following sets of assumptions. Growth of 10% per year is expected for the next three years, followed by constant growth of 6%. 5. Growth of 10% per year is expected for the next two years, declining to 6% over the next four years, and then continuing at 6%. 6. Growth is expected to be 12% in year one, 11% in year two, 10% in year three, then decline to 6% over the next four years, and then continue at 6%.

Reference no: EM131555431

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