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Consider the following information which relates to a given company: Item Earnings Per Share Price Per Share (Common Stock) Book Value (Common Stock Equity) Total Common Stock Outstanding Dividend Per

Consider the following information which relates to a given company: Item Earnings Per Share Price Per Share (Common Stock) Book Value (Common Stock Equity) Total Common Stock Outstanding Dividend Per Share 2019 Value $6.95 $35.75 $62.18 Million 2.4 Million $5.2 Analysts expect that the company could maintain a constant annual growth rate in dividends per share of 6.75% in the future, or possibly 8.01% for the next 2 years and 6.55% thereafter. In addition, it is expected that the risk of the firm, as measured by the risk premium on its stock, to increase immediately from 8.49% to 12.76%. Currently, the risk-free rate is 5.54% Required: Determine the firm's current book value per share. $

Apr 15 2021 View more View Less

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