Question
CD Bargain Barn is forecasting earnings per share of $3.15 next year. Its investors require a return of 14.5%. a. What is the no-growth value
CD Bargain Barn is forecasting earnings per share of $3.15 next year. Its investors require a return of 14.5%.
a. What is the no-growth value of CDs stock? (Round your answer to 3 decimal places.)
b. If the stocks price is currently $38, what is the present value of growth opportunities (PVGO)? (Round your answer to 3 decimal places.)
c. What is the implied P/E ratio for CDs stock? (Round your answer to 2 decimal places.)
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Investments
Authors: Zvi Bodie, Alex Kane, Alan Marcus, Lorne Switzer, Maureen Stapleton, Dana Boyko, Christine Panasian
9th Canadian Edition
1259271935, 9781259271939
