Calculate the estimated five-year earnings growth rate


Estimate the stock price/share of your firm using the Ohlson Model. There should be 9 terms: 7 EVA (abnormal earnings) terms, plus book value/share, plus a terminal value (TV). The 2 analysts forecasts are 0.29 and 0.48. The Estimated 5-year earnings growth rate is 13%. The dividend payout ratio is .26. The net book value/share is 2.63. Beta is equal to .85 The cost of equity capital (Re) using CAPM is 10.56%.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Calculate the estimated five-year earnings growth rate
Reference No:- TGS0695485

Expected delivery within 24 Hours