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    Group Assignment2

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    Beshoy Girgis
    Your boss believes the stock price of Corus is incorrect and wants you to determine the accurate price per share to pay. With information from a friend at a securities firm, you learn Corus' sales over the next 3 years are expected to increase by 10%, 15%, and 20% respectively, while costs of sales will rise 5% annually and selling/admin expenses will increase by 3% yearly. You need to calculate the terminal value of Corus to estimate its value and the price per share you are willing to pay for the target stock.

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    Group Assignment2

    Uploaded by

    Beshoy Girgis
    7 views1 page
    Your boss believes the stock price of Corus is incorrect and wants you to determine the accurate price per share to pay. With information from a friend at a securities firm, you learn Corus' sales over the next 3 years are expected to increase by 10%, 15%, and 20% respectively, while costs of sales will rise 5% annually and selling/admin expenses will increase by 3% yearly. You need to calculate the terminal value of Corus to estimate its value and the price per share you are willing to pay for the target stock.

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    Your boss believes the stock price of Corus is incorrect and wants you to determine the accurate price per share to pay. With information from a friend at a securities firm, you learn Corus' sales over the next 3 years are expected to increase by 10%, 15%, and 20% respectively, while costs of sales will rise 5% annually and selling/admin expenses will increase by 3% yearly. You need to calculate the terminal value of Corus to estimate its value and the price per share you are willing to pay for the target stock.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    7 views1 page

    Group Assignment2

    Uploaded by

    Beshoy Girgis
    Your boss believes the stock price of Corus is incorrect and wants you to determine the accurate price per share to pay. With information from a friend at a securities firm, you learn Corus' sales over the next 3 years are expected to increase by 10%, 15%, and 20% respectively, while costs of sales will rise 5% annually and selling/admin expenses will increase by 3% yearly. You need to calculate the terminal value of Corus to estimate its value and the price per share you are willing to pay for the target stock.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 1

    Group Assignment 2

    Your boss believes that the stock is mispriced. Can you help figure out what is the correct price that you should be willing to pay. You have a friend at a securities firm who helps you with the following information According to his research sales at Corus are expected to increase 1 !" 1#!"#!" 1!"2! respectively in the following # years and cost of sales will increase at the rate of #! per year$ selling and admin expenses will increase %! each year. &etermine the new 'erminal value of the firm and your estimate of the value of the firm and what price per share you would be willing to pay for the target

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