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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 8 (10 points) A share trades at a P/B ratio of 2.0. The no growth value indicates a P/B ratio of 0.90. What do you infer from this comparison? The market sees no growth in the future. The market sees some positive growth in the future. The market sees negative growth in the future

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