Question
CD Bargain Barn is forecasting earnings per share of $3.10 next year.Its investors require a return of 16.5%. a. What is the no-growth value of
CD Bargain Barn is forecasting earnings per share of $3.10 next year.Its investors require a return of 16.5%.
a.What is the no-growth value of CD's stock?(Round your answer to 3 decimal places.)
no growth value
b.If the stock's price is currently $35, what is the present value of growth opportunities (PVGO)?(Round your answer to 3 decimal places.)
PVGO
c.What is the implied P/E ratio for CD's stock?(Round your answer to 2 decimal places.)
implied P/E ratio
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Fundamentals Of Financial Management
Authors: James Van Horne, John Wachowicz
13th Revised Edition
978-0273713630, 273713639
