What is estimate of intrinsic value per share

Assignment Help Financial Management

Reference no: EM13937630

The Generic Genetic (GG) Corporation pays no cash dividends currently and is not expected to for the next 4 years. Its latest EPS was $5.2, all of which was reinvested in the company. The firm’s expected ROE for the next 4 years is 18% per year, during which time it is expected to continue to reinvest all of its earnings. Starting in year 5, the firm will payout all of its earnings as dividend and the firm’s ROE on new investments is expected to fall to 13% per year. GG’s market capitalization rate is 17% per year.

What is your estimate of GG's intrinsic value per share? (Round to 2 decimal places)?

Reference no: EM13937630

Questions Cloud

Discuss the differences between instruction and training : After selecting an organization, write a paper with the following: In the introduction to your paper, discuss the differences between instruction and training. Explain and describe the type of training program your organization intends to develop

Analyze the company modes of foreign involvement : Compare and contrast the company's global sourcing of equity and debt financing strategies with the strategies utilized by its nearest competitor. Evaluate the company's strategy toward international diversification by illustrating both the ben..

What is the par value of the companys common stock : What is the par value of the company's common stock? Did the company issue any new shares during the fiscal year ended December 31, 2006?

The general journal entry to record this transaction : On September 1, Ziegler Corporation had 71,000 shares of $5 par value common stock, and $213,000 of retained earnings. On that date, when the market price of the stock is $15 per share, the corporation issues a 2-for-1 stock split. The general journa..

What is estimate of intrinsic value per share : The Generic Genetic (GG) Corporation pays no cash dividends currently and is not expected to for the next 4 years. Its latest EPS was $5.2, all of which was reinvested in the company. The firm’s expected ROE for the next 4 years is 18% per year, duri..

Calculates the total ticket sales after each game : The first line indicates that the ticket price is $250 and that 5750 tickets were sold at that price. Output the number of tickets sold and the total sale amount. Format your output with two deciamal places.

Largest to a smallest colour class : Given a graph G and a proper vertex r-colouring c : V(G) ! [r], we can draw an auxiliary directed graph Ac on vertex set [r] by putting, for each i 6= j, an arc !i j if there is a vertex in c1(i) which has no neighbours in c1(j) (in other words, i..

Write a c code to find the sum of n natural numbers : Write a C++ code to find the sum of n natural numbers up to given term.

Telecommunications from university of south australia : Have recently completed my masters in telecommunications from university of south Australia and i want to assess my bachelors degree(electronics) with engineers Australia" student wants it to be assesed in electronics as he wants his bachelors de..

User Account

All Pages