The Current Book Value Per Share OfB

question 40

Multiple Choice

The current book value per share ofB.L. Black & Sons is $5.65 and the required return on the stock is 16 percent. The firm expects earnings per share of $1.85 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) $18.18
• E) $16.67

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