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The September 2008 the shares of Dell, Inc., the computer maker, traded at $20.50 each. In itslast annual report, Dell had reported book value
The September 2008 the shares of Dell, Inc., the computer maker, traded at $20.50 each. In itslast annual report, Dell had reported book value of $3,735 million with 2,060 million sharesoutstanding. Analysts were forecasting earnings per share of $1.47 for fiscal year 2009 and$1.77 for 2010 Dell pays no dividends. Calculate the residual value of Dell in 2009 and 2010 based onthe analysts' forecasts. Use a required return of 10percent a. 2009 2010 $3.28 $5.05 Ob. 2009 2010 $1.26 $1.44 2009 2010 $1.44 $1.29 Clear my choice
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