What the intrinsic value of the company as at the end is

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Problem 1: Analysts are forecasting a company's earnings-per-share to be $0.36 for 2017 and $0.50 for 2018. The required return on the company's shares is 9%. Assuming that abnormal earnings growth will be $0.10 in 2018 and zero thereafter, the intrinsic value of the company as at the end of 2016 is

Select one:

a. $15.33
b. $5.02
c. $9.10
d. $4.60

Reference no: EM132659840

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