2022 $2,600,000 She estimates that Grand Central's Re = 12%, and its growth rate g=8%. The company does not give a dividend . If its book value is $15,000,000, what valuation does the accountant place on the company? Please choose the answer closest to your calcualtion. A. $34,287,000 B. $9,082,000 C. $21,217,000 D. $24,073,00

2022 $2,600,000 She estimates that Grand Central's Re = 12%, and its growth rate g=8%. The company does not give a dividend . If its book value is $15,000,000, what valuation does the accountant place on the company? Please choose the answer closest to your calcualtion. A. $34,287,000 B. $9,082,000 C. $21,217,000 D. $24,073,00

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

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

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

Chapter13: Valuation: Earnings-based Approach

Section: Chapter Questions

Problem 17PC

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Question

Residual Income Valuation - Grand Central Video's accountant forecasts the following Net Income for the next two years:

Year

2021 $2,420,000

2022 $2,600,000

She estimates that Grand Central's Re = 12%, and its growth rate g=8%. The company does not give a dividend . If its book value is $15,000,000, what valuation does the accountant place on the company?

Please choose the answer closest to your calcualtion.

	A.	$34,287,000
	B.	$9,082,000
	C.	$21,217,000
	D.	$24,073,00

Leveraging special tenchniques in analyzing historical data to predict future trends. Forecasting covers the methods and types of forecasting and their application to case studies.

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15) Residual Income Valuation - Grand Central Video's accountant forecasts the following Net Income for the next two years: Year 2021 $2,420,000 2022 $2,600,000 She estimates that Grand Central's Re = 12%, and its growth rate g=8%. The company does not give a dividend. If its book value is $15,000,000, what valuation does the accountant place on the company? Please choose the answer closest to your calcualtion. А. $34,287,000 В. $9,082,000 С. $21,217,000 D. $24,073,00
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