What is the fair price for share of powell motors

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1. Powell Motors has a P/E constant of 15 and 140 million shares outstanding. Analysts forecast net income to be $257.6 million in the next fiscal year. What is the fair price for a share of Powell Motors?

2. Investors expect Bozo Inc. to grow at a constant 3% indefinitely. If the next dividend is expected to be $5.24 and the required return is 8.8%, what is the market price of Bozo?

Reference no: EM131997906

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