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Pandora Corporation reported a book value per share of $4 in its balance sheet on December 31, 2019. In early 2020, analysts were forecasting earnings

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Pandora Corporation reported a book value per share of $4 in its balance sheet on December 31, 2019. In early 2020, analysts were forecasting earnings per share of $0.8 for 2020 and $0.88 for 2021. A dividend per share $0.40 was indicated for 2020. The share traded at $20 at the end of 2019. Your required rate of return is 12% 3. What is the forecast of the residual earnings growth rate after 2021 that is implied by the $20 market price? a. 10% b. 8% 6. 994 d. 6% 4. How much of the $20 price is the market price on growth? a. $13.09 b. $10.83 C. $6.90 d. $15.21

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