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1.A company earned $5 per share in the year that just ended. The company has no more growth opportunities. The company has a 12 percent

1.A company earned $5 per share in the year that just ended. The company has no more growth opportunities. The company has a 12 percent return on equity and a 12 percent cost of equity. What is the stock worth today?

a.What if the company was expected to earn $5.50 next year and then never grow again? Assuming that their return on equity and cost of equity didn't change, what would the stock be worth today?

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