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

To: BGR who wrote (80612)	11/16/1998 12:51:00 AM
From: Moominoid	Read Replies (1) \| Respond to 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