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    Value of Assets in Place $6.80 Value of Stable Growth $16.49 Value of High Growth $14.38

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    minhthuc203
    The document breaks down the value of a company into three parts: the value of assets in place at $6.80, the value of stable growth at $16.49, and the value of high growth opportunities at $14.38. It then provides the inputs and outputs of a two-stage dividend discount model valuation of the company.

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    Value of Assets in Place $6.80 Value of Stable Growth $16.49 Value of High Growth $14.38

    Uploaded by

    minhthuc203
    3 views3 pages
    The document breaks down the value of a company into three parts: the value of assets in place at $6.80, the value of stable growth at $16.49, and the value of high growth opportunities at $14.38. It then provides the inputs and outputs of a two-stage dividend discount model valuation of the company.

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    amro99

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    amro99

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    The document breaks down the value of a company into three parts: the value of assets in place at $6.80, the value of stable growth at $16.49, and the value of high growth opportunities at $14.38. It then provides the inputs and outputs of a two-stage dividend discount model valuation of the company.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Download as xls, pdf, or txt
    3 views3 pages

    Value of Assets in Place $6.80 Value of Stable Growth $16.49 Value of High Growth $14.38

    Uploaded by

    minhthuc203
    The document breaks down the value of a company into three parts: the value of assets in place at $6.80, the value of stable growth at $16.49, and the value of high growth opportunities at $14.38. It then provides the inputs and outputs of a two-stage dividend discount model valuation of the company.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Download as xls, pdf, or txt
    of 3

    Break Down of Value Value of Assets in Place = Value of Stable Growth = Value of High Growth =

    $6.80 $16.49 $14.38

    212372729.xls.ms_office

    Two-Stage Dividend Discount Model Enter the following inputs for the two-stage DDM
    Current Inputs Current Earnings per share = High Growth Period Length of high-growth period (n) = 5 Growth rate during period (g) = Cost of Equity during period = Stable Growth Period Growth rate in steady state = Payout ratio in steady state = Cost of Equity in steady state = 5.00% 66.67% 9.20% $3.08 $27.79 $30.87 (in percent) (in percent) (in percent) 9.73% 8.82% Payout ratio during period () = 37.50% (Number of periods) (in percent) (in percent) (in percent) Year 1 2 3 4 5 Terminal Year Terminal Price EPS 1.76 1.93 2.11 2.32 2.54 2.67 $1.60 (in $ per share) 0.603064

    Output
    PV of Dividends = PV of Terminal Price = Value per share =

    Page 2

    212372729.xls.ms_office

    DPS 0.66 0.72 0.79 0.87 0.95 1.78 42.41

    PV of DPS 0.60 0.61 0.62 0.62 0.63

    PV of DPS

    27.7941292

    Page 3

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