Exhibit 14 -Based on the Information Provided,calculate the Intrinsic Value in 2010

question 71

Multiple Choice

Exhibit 14.5
Use the Information Below for the Following Problem(S)
$$\begin{array} { l c c } & \text { Wal-Elue } & \text { Industry } \\ \text { DPS } & 1.00 & 1.50 \\\text { Total As5et Tunover } & 3.20 & 2.50 \\\text { Net Profit Marpin } & 3.50 \% & 3.00 \% \\\text { EpS } & 4.00 & 3.00 \\\text { Total As5ets/Equity } & 3.00 & 4.00\end{array}$$
-Based on the information provided,calculate the intrinsic value in 2010 of a share of INV Corp.using the Present Value of Earnings Model (infinite holding period) .For 2010 net income was $250,000,total debt was $50,000,and there were 206,263 shares outstanding.The required rate of return is 12% and the estimated growth rate in earnings is 5.5%.

• A) $19.43
• B) $23.98
• C) $28.52
• D) $22.73
• E) $15.50

---

Definitions:

Obsessive Thoughts

Intrusive and unwanted thoughts that repeatedly enter the mind, leading to anxiety or distress and often compelling the individual to perform certain actions.

Contamination

The presence of an unwanted substance or material that makes something impure, unsafe, or infected.

Orderliness

A personality trait characterized by a desire for neatness, predictability, and organization in one's environment and activities.

Violence

The intentional use of physical force or power, threatened or actual, that either results in or has a high likelihood of resulting in injury, death, psychological harm, maldevelopment, or deprivation.