Analysts forecast forward earnings of $2.11 per share and a forecast of $2.67 for two years ahead.
Question:
Analysts forecast forward earnings of $2.11 per share and a forecast of $2.67 for two years ahead. The firm pays no dividends. The required return is 9 percent.
a. What is the long-term growth rate in abnormal earnings growth (AEG) implied by a market price of $105.69?
b. What is the market's forecast of EPS for three years ahead?
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The pro forma 0 1 2 EPS 211 267 DPS 00 000 Cumdividend earnings 267 Nor...View the full answer
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Related Book For 
Financial Statement Analysis and Security Valuation
ISBN: 978-0078025310
5th edition
Authors: Stephen Penman
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