b) 0 1 $3.55 $ 3.91 $ Calculate the price of MSFT using the PE Ratio to calculate the Terminal Value.(assume Net Income per share of $5.93 on year 3) Year FCFE 3 2 4.30 $ 4.42 F101*(1+G102) Growth Rate 10% 10% Terminal Value Cash Flows $ 3.91 $4.30 $69.53 =G101+G103 Share Price 3.0% $65.10 G101*(1+G102)/(C82-G102) $59.34 =NPV(C82,E104:G104)
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Find the share price given the following information. The setup here is all correct, but the answer should be $66.61 per share. What am I doing wrong? Discount rate (Ke) = 10%.
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- Assume the following ratios are constant: Total asset turnover Profit margin Equity multiplier Payout ratio 2.5 6.5% 1.6 20% What is the sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rate %Assume the following ratios are constant. Total asset turnover Profit margin Equity multiplier Payout ration 2.29 Sustainable growth rate 5.7% 1.76 36% What is the sustainable growth rate? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.1- Find the internal rate using the method of Internal Rate of Return (IRR) if i= 15%, for the table shown below. If the initial cost is (220,000 U) Cost (U) 350 380 400 500 550 470 780 650 690 450 Revenue 0 0 500 1000 770 450 880 660 890 770 (U) 1 2 3 Year 4 5 6 7 8 9 10
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