- 7PS032: Identify type of study design needed, including within or between groups where relevant: Research Methods Course Work, UOW, UK
- 7PS032: What do the means, range and standard deviations show?: Research Methods Course Work, UOW, UK
- 7PS032: You need to write a research proposal. It must be a quantitative research proposal: Research Methods Course Work, UOW, UK
- MN0493: Report the major points of your discussions with the client. This should include the construction of the portfolios: Investments and Risk Management Course Work, NUN, UK
- BUSI 1475: Your task is to identify and select an article from the BBC News website (news.bbc.co.uk): Management in a Critical Context Course Work, UOG, UK
- UMACTF-15-M: You have recently been appointed as a Financial Analyst for a leading investment bank in London: Corporate Financial Strategy Course Work, UWE, UK
- BAM5010: choose an organisation and make some recommendations for the delivery: Work Based Project Course Work, UOB, UK
- You are required to calculate ratios for Fresh Farms Ltd: financial Course Work, UK
- Understand the legal, ethical and theoretical context for health, safety and risk management: leadership and Management Course Work, UK
- P3 Describe the types of training and development used by a selected business: BTEC Business Extended Diploma Pearson Course Work, UK
- Describe how a selected business identifies training needs: BTEC Business Extended Diploma Pearson Course Work, UK
- Discuss your chosen business, background information and why you have chosen that business: BTEC Business Extended Diploma Pearson Course Work, UK
- Activity 7: Risk management in an organisation should be both sensible and proportionate to the level of risk involved: NEBOSH IDIP ID1 Research Paper Course Work, OU, UK
- Activity 6: Reviewing health and safety performance Critique your chosen organisation’s health and safety: NEBOSH IDIP ID1 Research Paper Course Work, OU, UK
- Activity 5: Management of contractors Review how your chosen organisation selects contractors and manages them while they are on site: NEBOSH IDIP ID1 Research Paper Course Work, OU, UK
- Activity 2: Preparing a brief research report on approaches to worker consultation: NEBOSH IDIP ID1 Research Paper Course Work, OU, UK
- Create an organisational risk profile for your chosen organisation: NEBOSH IDIP ID1 Research Paper Course Work, OU, UK
- Explain the differences between learning requirements and continuous professional development: Leadership and Management Assignment, UL, UK
- What steps, component parts and enabling tools would you use to develop a therapy: Advanced therapeutic medicinal products Course Work, TUM, UK
- CS3DS19: Construct a KNIME workflow to understand the data characteristics and quality, report: Data Science Algorithms and Tools Course Work, UOW, UK
Challenge Google’s market price in mid-2008 by challenging the forecasts implicit in the market price: Company Valuation Course Work, UOL, UK
University | University of London (UOL) |
Subject | Company Valuation |
- Challenge Google’s market price in mid-2008 by challenging the forecasts implicit in the market price. Tease out those forecasts using the abnormal earnings growth valuation model.
In mid-2008, Google traded at $520. Analysts at the time were forecasting EPS of $19.61 for 2008 and $24.01 for 2009, yielding a forward P/E of 26.5. Analysts’ consensus five-year EPS growth rate (this the EPS growth rate in 2010, 2011, 2012) was 28 percent. Google will pay no dividend. - Apply abnormal earnings growth (AEG) valuation to value a share of Google based on these forecasts. Beta shops report a typical beta for Google of about 2.0, so use a high required return of 12 percent (against the risk-free rate of 4 percent). Assume that AEG after 2012 grows at 4% per year, which is the long-term average GDP growth rate.
- Analysts’ intermediate-range forecasts (up to five years ahead) are notoriously optimistic, especially for a “hot stock” like Google. Therefore, now use only the 2008 and 2009 EPS forecasts by analysts, and estimate the growth rate in abnormal earnings growth (AEG) that the market is forecasting (i.e. is implicit in the stock price in mid-2008) for years after 2009. Now assume that AEG after 2009 grows at a constant rate that need not equal the long-term average GDP growth rate. Also compute EPS each year until 2014 implied by the growth rate in AEG that the market is forecasting. What does your answer tell you about analysts’ five-year growth rate of 28 percent (EPS growth rate in 2010, 2011, 2012) mentioned above?
Do You Need Assignment of This Question
Get high-quality and reliable assignment writing help UK from experienced professionals at StudentsAssignmentHelp.co.uk. We offer a variety of services for all your academic needs. Our BTEC assignment writers will help you create the perfect assignment that meets all of your requirements. Our team of expert writers can craft a unique and thoughtful project that is sure to impress your professor. We also provide Level assignment help for anyone who needs additional support in completing their tasks.
Answer