Question
Bill's Bakery expects earnings per share of $3.30 next year. Current book value is $5.30 per share. The appropriate discount rate for Bill's Bakery is
Bill's Bakery expects earnings per share of $3.30 next year. Current book value is $5.30 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 3.50 percent forever.(Do not round intermediate calculations. Round your answer to 2 decimal places.)
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Fundamentals Of Financial Accounting
Authors: Fred Phillips, Shana Clor Proell, Robert Libby, Patricia Libby
7th Edition
1265440166, 978-1265440169
