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Under Dan's assumptions, what is the estimated stock price?

User Roseann
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1 Answer

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Final answer:

To calculate the estimated stock price, determine the present value of future profits using a discount rate of 15%. Divide the present value of total profits by the number of shares to get the price per share, which is approximately $256,500.

Step-by-step explanation:

To calculate the estimated stock price, we need to determine the present value of future profits using a discount rate. In this case, the discount rate is 15%. We then divide the present value of total profits by the number of shares to get the price per share. In this example, the estimated stock price would be about $256,500 per share.

User Olivier Amblet
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