What is the analysts best estimate of the companys share


The net income of a publicly-traded company is currently $120 million. A leading Wall Street financial analyst believes that the company’s net income will continue to grow at a rate of 3 percent annually. There are 10 million shares outstanding. What is the analyst’s best estimate of the company’s share price if the relevant risk-adjusted interest rate falls from 6 percent to 5 percent, and remains at that level for the foreseeable future? a. $424 b. $356 c. $630 d. $512 e. $282.

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Financial Management: What is the analysts best estimate of the companys share
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