What should the current price of healthsure share price be

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HealthAmerica is a quick growing healthcare firm. Rapidly growth of 30% is projected for the next two years, then a growth rate of 17% for the next following two years. Beyond this, the firm anticipates a consistent growth rate of 8%. The firm expects to pay its first dividend of $2.46 one year from today. The required date of return (or the cost of capital) is 18% and the market price of the firms shares is $40 per share. The firm has asked you to conduct a share price evaluation:

Problem 1: What should the current price of Healthsure share price be?

Problem 2: FaceTime your valuation, are the service shares fairly valued? Explain

Reference no: EM132905745

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