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Technology Stocks : Dell Technologies Inc.
DELL 127.92+0.4%Dec 30 3:59 PM EST

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To: BGR who wrote (80612)11/16/1998 12:51:00 AM
From: Moominoid  Read Replies (1) of 176387
 
I believe historical averages for risk premium for S&P500 is about 8.4%.

I used 6.5% because I thought that was the mean for the last 70 years. Maybe I'm wrong. I think 8% growth is too high for the average.

Holding the discount rate constant you get less than 50% increase in DELL's price under the assumptions I previously posted. More like 25% because growth is assumed to be slowing. Lowering, the discount rate would of course boost that up.

I had the impression that TigerPaw thought DELL's growth was 50% quarter to quarter which was what I was pointing out was no the case.

David
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