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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

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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 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 7 (10 points) What is the market's forecast of earnings per share for 2023?(Hint: As mentioned in Chapter 5 (and Chapter 6), analysts typically do not make dividend forecasts, so one of the methods to circumvent this problem is to use the current available payout information. Thus, we will assume that the dividend per share in 2021 and afterwards will be calculated using the dividend payout ratio for 2020(=DPS for 2020/ EPS for 2020).) $1.0359 $1.0648 $1.0842 $1.2419

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