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Question
The current book value per share of B.L. Black & Sons is $5.35 and the required return on the stock is 15.5 percent. The firm expects earnings per share of $2.25 next year with annual earnings growth of 4.5 percent. What is the current market value of this stock?A. $9.16
B. $10.91
C. $13.88
D. $18.27
E. $20.30
Answer
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