What is your estimate to the Terminal Value

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Reference no: EM132799141

Question - InVideo Inc. paid $5 million in dividends this year. Earnings are expected to grow by 15% each year for the next 5 years and 3% thereafter. Shareholders require a return of 12%.

a) What is your estimate to the Terminal Value (TV) at the end of year five?

b) What is your estimate to the intrinsic value (Fair Value) of equity?

c) If there are 15 million shares outstanding, what is your estimate to the price per share?

Reference no: EM132799141

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