Calculate the share price for bill bakery


Problem:

Bill's Bakery expects earnings per share of $3.46 next year. Current book value is $5.5 per share. The appropriate discount rate for Bill's Bakery is 11 percent.

Find out:

Question 1: Calculate the share price for Bill's Bakery if earnings grow at 4.2 percent forever. Please show your all calculation and formulas.

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Finance Basics: Calculate the share price for bill bakery
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