Question
Bills Bakery expects earnings per share of $2.82 next year. Current book value is $4.70 per share. The appropriate discount rate for Bills Bakery is
Bills Bakery expects earnings per share of $2.82 next year. Current book value is $4.70 per share. The appropriate discount rate for Bills Bakery is 8 percent. Calculate the share price for Bills Bakery if earnings grow at 3.10 percent forever. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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An Introduction to Investment Banks, Hedge Funds, and Private Equity
Authors: David P. Stowell
1st edition
978-0123745033, 0123745039, 978-9380931074
