Question
Problem 6-13 Bills Bakery expects earnings per share of $3.46 next year. Current book value is $5.5 per share. The appropriate discount rate for Bills
Problem 6-13
| Bills Bakery expects earnings per share of $3.46 next year. Current book value is $5.5 per share. The appropriate discount rate for Bills Bakery is 11 percent. Calculate the share price for Bills Bakery if earnings grow at 4.2 percent forever. (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.) |
| Share price | $ |
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Handbook Of Research Methods And Applications In Empirical Finance
Authors: Adrian R. Bell, Chris Brooks, Marcel Prokopczuk
1st Edition
1782540172, 978-1782540175
