Consider a high-growth stock, intrinsically valued at 305.4. Its forward P/E ratio is 60 and an appropriate required rate of

Question

Consider a high-growth stock, intrinsically valued at 305.4. Its forward P/E ratio is 60 and an appropriate required rate of return is 0.16. The company pays no dividends.
How much of the current stock value is represented by the firm's growth opportunities in dollars?
Hint: Use the P/E ratio to estimate earnings with PO=value.
273.59
288.50
258.40
297.94
249.51

Kunduz · Accepted Answer

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