Question
Bills Bakery expects earnings per share of $2.42 next year. Current book value is $4.2 per share. The appropriate discount rate for Bills Bakery is
Bills Bakery expects earnings per share of $2.42 next year. Current book value is $4.2 per share. The appropriate discount rate for Bills Bakery is 16 percent. Calculate the share price for Bills Bakery if earnings grow at 4.2 percent forever.
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Basic Finance An Introduction To Financial Institutions, Investments, And Management
Authors: Herbert B. Mayo
12th Edition
1337691011, 978-1337691017
