Using a Graham-Buffet (GB) model, where dividends are expected to remain flat for eleven (11) years, the

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Using a Graham-Buffet (GB) model, where dividends are expected to remain flat for eleven (11) years, the book value grows at rate g for n=11 years, and the stock is sold at the end of year eleven (11), what is the intrinsic value for Acme Inc.'s common stock given the following information from their most recent financial statements:

Item	Value
BV0 (per share)	11.68
D0 (per share)	1.83
g	6.07 %
PBLL	2.86
Rcs	12.97 %

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Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

ISBN: 978-1337614689

9th edition

Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

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Posted Date: Oct 11, 2023 06:17 AM

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Using a Graham-Buffet (GB) model, where dividends are expected to remain flat for eleven (11) years, the

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Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

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