Finance Question

Why don't you set up the simplest 1-year model in Excel and check for your self. You can also run sensitivities on the growth and the discount rates. That won't take you a minute. Cheers.

Depends on the company's profitability and on the pre-existing discount rate in use, among other things.

the answer depends on many factors.

Dont you love guys like Ibguy LOL "Why don't you set up the simplest 1-year model in Excel and check for your self. You can also run sensitivities on the growth and the discount rates. That won't take you a minute."

NOTTTTT

if you dont want to answer the question Ibguy don't post! Some people forget that this is a DISCUSSION forum.

Chillax buddy. Sometimes it's a good thing to think/learn about something by trying it and struggling a bit. It depends on the operating leverage (fixed vs variable costs), profit margins, existing discount rate.