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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 BV (per share) Do (per share) 9 PBLL Res Value 14.91 1.31 7.89% 1.82 14.75%

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 BV (per share) Do (per share) 9 PBLL Res Value 14.91 1.31 7.89% 1.82 14.75%

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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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 BV (per share) Do (per share) 9 PBLL Res Value 14.91 1.31 7.89% 1.82 14.75%
Transcribed Image Text: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 BV (per share) Do (per share) 9 PBLL Res Value 14.91 1.31 7.89% 1.82 14.75%
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