Discussions in this course are set up as Literature Review. You are supposed to compare and contrast the opinions of the authors of the articles provided in
the weekly Learning materials, present the important information, data (if applicable), statistics (if applicable) to support your conclusions. It is important
that the Literature review is written in your own words with small quotes from the articles. All quotes must have references in accordance with the 7th Edition
Use your selected company to complete a case study of Growth estimation and Terminal Value. Provide discussion comments to analyze and support
Title your post with Company Symbol and Your Name.
Estimating Growth –
There are three ways to estimate growth rates for earnings, revenues, and dividends. These include (1) the growth rate of the firm’s past (operating) earnings,
(2) obtain the information from analysts, and (3) estimate the rates from the firm’s fundamentals. Using each of these methods, what is your estimate of the
growth rate for the company that you elected to study?
Estimating Terminal Value –
Analysts normally must calculate a terminal value of a firm when preparing a discounted cash flow valuation. There are three ways to prepare this estimate,
which include (1) assuming a liquidation value of the firm’s assets in the terminal year, (2) applying a multiple to earnings, revenues or book value, and (3)
assuming the free cash flows will grow at a constant rate forever (a stable growth rate). Using each of these methods, what is your estimate of the terminal
value for the company that you elected to study?
3. Most Important Things Learned –
What are the most important things you learned from the study of this week’s readings and assignments?