Question
Bills Bakery expects earnings per share of $2.58 next year. Current book value is $4.40 per share. The appropriate discount rate for Bills Bakery is
Bills Bakery expects earnings per share of $2.58 next year. Current book value is $4.40 per share. The appropriate discount rate for Bills Bakery is 10 percent. Calculate the share price for Bills Bakery if earnings grow at 2.90 percent forever. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
12th Edition
0136096689, 978-0136096689
