Calculate the share price for bill bakery

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Reference no: EM132209141

Question - Bill's Bakery expects earnings per share of $2.1 next year. Current book value is $3.8 per share. The appropriate discount rate for Bill's Bakery is 12 percent. Calculate the share price for Bill's Bakery if earnings grow at 2.5 percent forever.

Reference no: EM132209141

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