13. Residual Income Model (LO3, CFA9) Bills Bakery expects earnings per share of $2.56 next year. Current
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13. Residual Income Model (LO3, CFA9) Bill’s Bakery expects earnings per share of $2.56 next year. Current book value is $4.70 per share. The appropriate discount rate for Bill’s Bakery is 11 percent.
Calculate the share price for Bill’s Bakery if earnings grow at 3 percent forever.
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Related Book For
Fundamentals Of Investments Valuation And Management
ISBN: 9781260013979
9th Edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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