Marsh
10-21-2013, 02:09 PM
Hey guys,
Im kind of stuck on this question, I think I might just have a brain fart but can't seem to find a way to solve it...any help would be appreciated.
It is Corporate Finance btw.
"The shares of Giant Film Company shares trade at $29 with earnings of $3 per share and a required return of 10 percent. Calculate the present value of growth opportunities as a percentage of the market price."
What formula(s) do I need to use?
Im kind of stuck on this question, I think I might just have a brain fart but can't seem to find a way to solve it...any help would be appreciated.
It is Corporate Finance btw.
"The shares of Giant Film Company shares trade at $29 with earnings of $3 per share and a required return of 10 percent. Calculate the present value of growth opportunities as a percentage of the market price."
What formula(s) do I need to use?