Essay: Sensitivity Analysis of Intrinsic Value per Share

Essay: Sensitivity Analysis of Intrinsic Value per Share
June 8, 2011 Comments Off on Essay: Sensitivity Analysis of Intrinsic Value per Share Academic Papers on Business Studies,Sample Academic Papers admin

Sample Essay

In the first case of our sensitivity analysis the growth rate is decreased to 1 percent and the discounting factor is held constant at 4 percent which changes the intrinsic value per share to $10.26 which is lower than the expected $11 per share in the base case. In the second scenario the growth rate is increased to 3 percent while the discount rate is held constant at 4 percent which increases the intrinsic value per share to $11.38.

The third case is estimated with a constant growth rate of 2 percent and the discount rate is decreased to 3 percent which increases the intrinsic value per share to $11.97. The intrinsic value per share in the fourth case has decreased to $10.82 per share where the growth rate is held constant at 2 percent and the discount rate is increased to 5 percent. The fifth scenario entails a growth rate of 1 percent and a discount rate of 3 percent which brings the intrinsic value per share to $10.80. In scenario 6 we have decreased the growth rate to 1 percent and increased the discount rate to 5 percent which decreases the intrinsic value per share to $9.74. Scenario 7 has been setup with the growth rate and discount rate being same at 3 percent, which means the growth rate has been increased and the discount rate has been decreased and the resulting intrinsic value per share is the same as scenario 3 which is $11.97.

Please go to the order form to order essays, research papers, term papers, thesis, dissertation, case study, assignments on this essay topic.

 

Related Essays, Research Papers, Term Papers, Thesis, Dissertation, Case Study, Assignments entries.

...

BUY CUSTOM ESSAY

...

Tags
About The Academic Paper