Value a company's stock
Response to the following problem:
For fiscal year 2014, Mango Computer, Inc., reported net sales of $19,323 million, net income of $1,997 million, and no significant discontinued operations, extraordinary items, or accounting changes. Earnings per share was $2.20. At a capitalization rate of 5%, how much should one share of Mango stock be worth? Compare your estimated stock price with the market price of $51.02 as quoted in the newspaper. Based on your estimated market value, should you buy, hold, or sell Mango stock?