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Bill's Bakery expects earnings per share of $2.34 next year. Current book value is $4.10 per share. The appropriate discount rate for Bill's Bakery is
Bill's Bakery expects earnings per share of $2.34 next year. Current book value is $4.10 per share. The appropriate discount rate for Bill's Bakery is 15 percent. Calculate the share price for Bill's Bakery if earnings grow at 2.70 percent forever. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Step by Step Solution
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Raising Venture Capital
Authors: Rupert Pearce, Simon Barnes
1st Edition
0470027576, 978-0470027578
