What is the intrinsic value per share at the end

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Problem 1: At the end of 2019 a firm has a book value of equity of $4,500,000 and it has 500,000 shares outstanding. Analysts have forecasted EPS for 2020-2022 will be $5.00, $4.00 and $3.50, respectively. They have also forecasted DPS for 2020-2022 will be $0.30, $3.00 and $2.00, respectively. If residual earnings is expected to be constant after 2022. What is the intrinsic value per share at the end 2019?

Select one:

a. $45.71
b. $40.36
c. $50.64
d. $28.32

 

 

Reference no: EM132659893

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