Question
A stock trades for $90 has a book value per share of $25, analysts EPS forecast for year 1 is $15. The required return is
A stock trades for $90 has a book value per share of $25, analysts’ EPS forecast for year 1 is $15. The required return is 13%. What is the speculative value implied by the observed market price?
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Financial Accounting
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
7th Edition
978-0470477151, 978-0-470-5562, 470556242, 0-470-55624-2, 9780470556245, 978-0470507018
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