Assume that Bon Temps is expected to experience supernormal growth of 30% for the next 3 years, then to return to its long-run constant growth rate of 6%. What is the stock’s value under these conditions?

asked Jan 3, 2021 191k views

4 votes

by Shoan

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2 votes

Answer:

Expected value one year from now=D2/(k-g)

=2.25/(16%-6%)

=22.5

Step-by-step explanation:

Anther answered Jan 8, 2021

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