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Use the following information for the next four questions. Pandora Corporation reported a book value per share of $4 in its balance sheet on December
Use the following information for the next four questions. 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%. Question 5 (10 points) How much of the $20 price is the market price on growth? $10.83 $6.90 $15.21 $13.09
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