TechCo is a successful tech company. You have estimated the C of E to be 11%...
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TechCo is a successful tech company. You have estimated the C of E to be 11% and expect share buybacks and dividends to grow 8%/year, and you believe the company could be sold for $2.4 billion at the end of Year 4. • 1) Fill in Years 2, 3 and 4 of the timeline below and 2) calculate the company's estimated current market cap and share price given 100 million shares outstanding. Year Dividends Buybacks Div+Buybacks Mkt Cap Sum of PVS: 0 ? Estimated True Value / Share: 1 45 55 100 Timeline ($ in Millions) 2 3 4 TechCo is a successful tech company. You have estimated the C of E to be 11% and expect share buybacks and dividends to grow 8%/year, and you believe the company could be sold for $2.4 billion at the end of Year 4. • 1) Fill in Years 2, 3 and 4 of the timeline below and 2) calculate the company's estimated current market cap and share price given 100 million shares outstanding. Year Dividends Buybacks Div+Buybacks Mkt Cap Sum of PVS: 0 ? Estimated True Value / Share: 1 45 55 100 Timeline ($ in Millions) 2 3 4
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To answer this question we need to forecast the dividends and buybacks for years 2 3 and 4 and then calculate the present value of these cash flows as ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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