Question
Using a Graham-Buffet (GB) model, where dividends are expected to remain flat for eleven (11) years, the book value grows at rate for n=11 years,and
Using a Graham-Buffet (GB) model, where dividends are expected to remain flat for eleven (11) years, the book value grows at rate for n=11 years,and the stock is sold at the end of year eleven (11), what is the intrinsic value for Acme Inc.'s common stock given the following information from their most recent financial statements:
| Item | Value |
| 0(per share) | 13.03 |
| 0(per share) | 1.42 |
| 7.63 % | |
| 3.41 | |
| 12.45 % |
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Financial Management Principles and Applications
Authors: Sheridan Titman, Arthur J. Keown, John H. Martin
13th edition
134417216, 978-0134417509, 013441750X, 978-0134417219
