The values that you have utilised in part 13 represent only one possible set of choices fora valuation model. Determine the intrinsic value of your chosen company using a rangeof values (+1% and -1% for your growth rates and +1% and -1% for your discount rate).You should have a total of 9 intrinsic value calculations like the table below:g/r +1% 0% -1%+1%0% Base Case-1%For example, the top left slot would calculate an intrinsic value using both a growth rateand required rate of return that is 1% higher than your chosen rates in part 13 (for anynegative calculations just put N/A).
Question
The values that you have utilised in part 13 represent only one possible set of choices fora valuation model. Determine the intrinsic value of your chosen company using a rangeof values (+1% and -1% for your growth rates and +1% and -1% for your discount rate).You should have a total of 9 intrinsic value calculations like the table below:g/r +1% 0% -1%+1%0% Base Case-1%For example, the top left slot would calculate an intrinsic value using both a growth rateand required rate of return that is 1% higher than your chosen rates in part 13 (for anynegative calculations just put N/A).
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