The Current Book Value Per Share of B

question 53

Multiple Choice

The current book value per share of B.L. Black & Sons is $5.35 and the required return on the stock is 15.5 percent. The firm expects earnings per share of $2.25 next year with annual earnings growth of 4.5 percent. What is the current market value of this stock?

• A)$9.16
• B)$10.91
• C)$13.88
• D)$18.27
• E)$20.30

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Definitions:

Philosophers

Individuals who engage in critical study, thought, and discussion of fundamental questions regarding life, knowledge, values, reason, mind, and language.

Individualism

The moral, political, or social outlook that emphasizes the moral worth of the individual and the importance of independence and self-reliance.

Jean-Jacques Rousseau

A Genevan philosopher, writer, and composer of the 18th century whose political philosophy influenced the Enlightenment across Europe, as well as aspects of the French Revolution and the development of modern political, sociological, and educational thought.

Social Conventions

Agreed-upon norms and behaviors within a society or group, often unspoken and learned through social interaction.