If a stock is currently priced at 40 per share and the


If a stock is currently priced at $40 per share and the firm’s current earnings per share is $5, what price would you pay if you forecast new earnings per share to be $6.00 and you require a rate of return for the risk taken at 13%? Please show work.

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Financial Management: If a stock is currently priced at 40 per share and the
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