The following are earnings and dividend forecasts made at the end of 2020 for the IBM Corporation with a $40 BV per common share at that time. In 2021, EPS will be $7 and DPS $1. In 2022, EPS will be $8 and DPS $1.50. In 2023, EPS will be $9 and DPS $2. The firm has a required equity return of 15% per year. Calculate the book value per share for the company for each year from 2021 to 2023, accordingly.

The following are earnings and dividend forecasts made at the end of 2020 for the IBM Corporation with a $40 BV per common share at that time. In 2021, EPS will be $7 and DPS $1. In 2022, EPS will be $8 and DPS $1.50. In 2023, EPS will be $9 and DPS $2. The firm has a required equity return of 15% per year. Calculate the book value per share for the company for each year from 2021 to 2023, accordingly.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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