What is the no-growth value of CDs stock

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Reference no: EM131602021

CD Bargain Barn is forecasting earnings per share of $3.25 next year. Its investors require a return of 15.5%.

a. What is the no-growth value of CD’s stock? (Round your answer to 3 decimal places.)

No-growth value $

b. If the stock’s price is currently $44, what is the present value of growth opportunities (PVGO)? (Round your answer to 3 decimal places.)

PVGO $

c. What is the implied P/E ratio for CD’s stock? (Round your answer to 2 decimal places.)

Implied P/E ratio

Reference no: EM131602021

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