5 ms·
Assuming no growth; risk free + equity risk premium = 8% + company lasts infinitely (or for a long time): 3551e6/.75/.08 = 5.9110e9, or 6 billion. Let's assume
by hessenwolf 16y ago
Assuming no growth; risk free + equity risk premium = 8% + company lasts infinitely (or for a long time):
3551e6/.75/.08 = 5.9110e9, or 6 billion.
Let's assume they grow to five times their current income over the next five years; and, ooh, I am busy - just multiply the previous number by five to get an approximation.