1. Business
  2. Finance
  3. the current sales for a company are 10000000 analysts are...

Question: the current sales for a company are 10000000 analysts are...

Question details

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?

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution