Question: the current sales for a company are 10000000 analysts are...
The current sales for a company are $10,000,000. Analysts are forecasting an average rate of growth in sales of 20 % per year for the next ten years. Similarly, analysts believe that the net profit margin will be about 10 % in ten years. Current shares outstanding are 2,000,000 and they are expected to stay at that level for the next ten years. The PE-multiple at the end of ten years is estimated will be 25.
a) Find the EPS for ten years from today, the selling price for ten years from today, If a required rate is estimated to be 15 %, what should be the value of this company today? What would be the total market value of the company (market cap) today?