Mulroney previously calculated a valuation for Southampton for both the constant-growth and two-stage DDM as shown below:

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Mulroney previously calculated a valuation for Southampton for both the constant-growth and two-stage DDM as shown below:

Constant-Growth Approach Two-Stage Approach

$29 $35.50 Using only the information provided and your answers to CFA Problems 5 through 7, select the stock (EO or SHC) that Mulroney should recommend as the better value, and justify your selection. p-696

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ISE Investments

ISBN: 9781266085963

13th International Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus

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