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Bulls Enterprises (ticker: BE) is engaged in the business of making athletic shoes. It pays a dividend of $1.50 per quarter; some people believe it
- Bulls Enterprises (ticker: BE) is engaged in the business of making athletic shoes.
- It pays a dividend of $1.50 per quarter; some people believe it will stay the same and others believe it will grow by 5% per year.
- Other shoe manufacturers trade in the market for 10.0x EBITDA.
- Other similar companies also trade with a PE multiple of 16x.
- BE reported net income of $70mm in its most recent year.
- BE trades on NASDAQ and closed yesterday at $150 per share.
- BE has 5.0 million shares outstanding.
Dividend | Growing Dividend | Market Value | PE Method |
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Show total valuations (not per share) using three of the four different methodologies listed below. Place your answer in the table below and show your work. (9 points)
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