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Analysts expect that the EPS of Boulder Company in the next five years to be $4.1, $4.5, $5.0, $5.6, and $6.2 respectively. Brown will keep
Analysts expect that the EPS of Boulder Company in the next five years to be $4.1, $4.5, $5.0, $5.6, and $6.2 respectively. Brown will keep the current payout ratio of 55% in foreseeable years. The average leading industry P/E in year three is expected to be 21.5. Calculate the current value of Browns stock if the cost of equity is 12%.
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