Residual Income Model (LO3, CFA10) Bills Bakery expects earnings per share of $2.56 net year. Current book

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Question:

Residual Income Model (LO3, CFA10) Bill’s Bakery expects earnings per share of $2.56 net year. Current book value is $4.70 per share. The appropriate discount rate for Bill’s Bakery is 11 percent. Calculate the share price for Bill’s Bakery if earnings grow at 3 percent forever.