Question
1.CD Bargain Barn is forecasting earnings per share of $3.20 next year.Its investors require a return of 17.0%. a.What is the no-growth value of CD's
1.CD Bargain Barn is forecasting earnings per share of $3.20 next year.Its investors require a return of 17.0%.
a.What is the no-growth value of CD's stock?
b.If the stock's price is currently $47, what is the present value of growth opportunities (PVGO)?
c.What is the implied P/E ratio for CD's stock?
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Financial Accounting and Reporting
Authors: Barry Elliott, Jamie Elliott
14th Edition
978-0273744535, 273744445, 273744534, 978-0273744443
