Billrsquos bakery has current earnings per share of 25, Financial Management

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Billrsquos bakery has current earnings per share of 25

Bill’s Bakery has current earnings per share of $2.5. Current book value is $4.3 per share. The appropriate discount rate for Bill’s Bakery is 17 percent. Calculate the share price for Bill’s Bakery if earnings grow at 3.4 percent forever. (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Share price $

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Financial Management: Billrsquos bakery has current earnings per share of 25

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Financial Management: Billrsquos bakery has current earnings per share of 25

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