Question
Dauterive Barber Shops (DBS) earned $3.50 per share this year. Earnings are expected to grow at 5% next year. DBS pays out 60% of earnings
Dauterive Barber Shops (DBS) earned $3.50 per share this year. Earnings are expected to grow at 5% next year. DBS pays out 60% of earnings as dividends. If similar firms currently have P/E ratios of 8.5 based on forecasted earnings, what market price will we observe for DBS?
$34.91
$29.75
$27.56
$18.74
$31.24
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Public Finance
Authors: Harvey S Rosen
7th Edition
0072876484, 978-0072876482
