Question
CD Bargain Barn is forecasting earnings per share of $3.25 next year. Its investors require a return of 15.0%. What is the no-growth value of
CD Bargain Barn is forecasting earnings per share of $3.25 next year. Its investors require a return of 15.0%. What is the no-growth value of CDs stock? (Round your answer to 3 decimal places.)
If the stocks price is currently $50, what is the present value of growth opportunities (PVGO)? (Round your answer to 3 decimal places.)
What is the implied P/E ratio for CDs stock? (Round your answer to 2 decimal places.)
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Personal Finance Turning Money Into Wealth
Authors: Arthur Keown
8th Edition
0134730364, 978-0134730363
