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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Essentials of Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
10th edition
77835425, 978-0077835422
