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Question 19 1 pts Suppose you are thinking about buying a share of Quack, Inc. You believe that BVR, Co. is a comparable company in
Question 19 1 pts Suppose you are thinking about buying a share of Quack, Inc. You believe that BVR, Co. is a comparable company in terms of risk and as such can be used to help value Quack, Inc. If the earnings per share for Quack, Inc. is currently $2.00, the earnings per share for BVR is $3.00, and the price-to- earnings ratio for BVR is equal to 17.50, what is the price you would be willing to pay for Quack, Inc? Report your answer as a whole number reported to two decimal places (i.e. 1.23). Do not include a dollar symbol in your response. Question 20 1 pts Darden Restaurants is expected to pay annual dividends of $1.90 and $2.10 over the next two years, respectively. After that, the company expects to pay a constant dividend of $2.30 a share. What is the value of this stock at a required return of 16 percent? Hint: You will need to use general dividend discount model and the dividend discount model with no dividend growth to answer this question. $12.44 $14.60 $13.89 $13.30
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