Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Linda Kaplan who wrote (9469)	3/16/1998 10:39:00 PM
From: Moominoid	Read Replies (1) \| Respond to of 213176

>Fascinating. I don't know how you got the >8.425% from the beta of .45, but I like the > results. Thanks. The formula I used is 5.5%+6.5%*0.45 Assuming the risk-free interest rate is 5.5% and the equity premium is 6.5%. The analysis I showed isn't strictly correct as it would be for a company that paid out all profits in dividends. Profit growth would only come then through technical change/cost-cutting/inflation as there would be no net investment - investment just matches depreciation. I'm hoping to get comments on these analyses to see how I can improve them. David