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Questions 7 (A) Bills Bakery expects earnings per share of 3.55 next year. Current book value is 5.30 per share. The appropriate discount rate for

Questions 7

(A) Bills Bakery expects earnings per share of 3.55 next year. Current book value is 5.30 per share. The appropriate discount rate for Bills Bakery is 10 percent. Calculate the share price for Bills Bakery if earnings grow at 3 percent forever.

(B). For Bills Bakery described in the previous question, suppose instead that current earnings per share are 3.55. Calculate the share price for Bills Bakery

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