You are running a hot internet company analysts predict


You are running a hot Internet company. Analysts predict that its earnings will grow at 20% per year for the next five years. After? that, as competition? increases, earnings growth is expected to slow to 5% per year and continue at that level forever. Your company has just announced earnings of $4 million. What is the present value of all future earnings if the interest rate is 8%?? ?(Assume all cash flows occur at the end of the? year.)

Request for Solution File

Ask an Expert for Answer!!
Financial Management: You are running a hot internet company analysts predict
Reference No:- TGS02136308

Expected delivery within 24 Hours