What is estimate of GGs intrinsic value per share

Assignment Help Financial Management

Reference no: EM131932824

The Generic Genetic (GG) Corporation pays no cash dividends currently and is not expected to for the next four years. Its latest EPS was $5.60, all of which was reinvested in the company. The firm’s expected ROE for the next four years is 22% per year, during which time it is expected to continue to reinvest all of its earnings. Starting in year 5, the firm’s ROE on new investments is expected to fall to 17% per year. GG’s market capitalization rate is 21% per year. a. What is your estimate of GG’s intrinsic value per share? (Round your answer to 2 decimal places.)

Reference no: EM131932824

Questions Cloud

Do you feel that hipaa really protects the patient : Share your thoughts on HIPAA with the class. Do you feel that HIPAA really protects the patient?

Explain the goals as the focus of your personal fitness plan : You will then use these goals as the focus of your personal fitness plan, which is due at the end of the semester.

What should be the price of the stock today : The common stock of ABC Corp. just paid a dividend of $3.00 per share today. What should be the price of the stock today?

Pegged exchange rates : Faced with a continuing drain of U.S. gold reserves, the U.S. chose to. Pegged exchange rates

What is estimate of GGs intrinsic value per share : GG’s market capitalization rate is 21% per year. What is your estimate of GG’s intrinsic value per share?

What correlations did your research show on environment : What correlations did your research show between environmental and health issues in the school-aged child? Make sure to include references to the article.

Find that dividends : In the real world, we find that dividends:

What issue or concern triggered the need for the objective : What issue or concern triggered the need for this objective? What is the scope of this issue/concern in the community?

Why do you think there are social norms : Why do you think there are social norms? Do you think that social norms are really viewed by everyone (same state/ country) the same?

User Account

All Pages