Question: Obtain the most recent annual report of a publicly traded
Obtain the most recent annual report of a publicly traded company, and use the procedure outlined in Section 6.10.3 to estimate the value per common share of the company. Compare this value with the company’s actual market value per share about three months after the company’s year end. Explain any difference. In your explanation, include consideration of possible effects of recognition lag, and justify your assumption about the persistence of abnormal earnings.
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