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

6.8k points

Please log in or register to add a comment.

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

6.9k points

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

7.4m questions

9.9m answers