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Xin's Bakery expects earnings per share of $3.38 next year. Current book value is $5.40 per share. The appropriate discount rate for Xin's Bakery is
Xin's Bakery expects earnings per share of $3.38 next year. Current book value is $5.40 per share. The appropriate discount rate for Xin's Bakery is 10 percent. Calculate the share price for Xin's Bakery if earnings grow at 5.00 percent forever. Note: Do not round intermediate calculations. Round your answer to 2 decimal places Step by Step Solution
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International Financial Management
Authors: Geert Bekaert, Robert J. Hodrick
4th International Edition
013284298X, 9780132842983
