Appropriate discount rate


Problem:

Bill's Bakery expects earnings per share of $2.26 next year. Current book value is $4 per share. The appropriate discount rate for Bill's Bakery is 14 percent.

Question: Calculate the share price for Bill's Bakery if earnings grow at 3.2 percent forever. Please provide all computation and formulas.

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Finance Basics: Appropriate discount rate
Reference No:- TGS0875969

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