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2. Telmax Inc. has adopted the policy of reinvesting 55 % of its profits .The profitability of its assets is equal to 20 %. The

2. Telmax Inc. has adopted the policy of reinvesting 55 % of its profits .The profitability of its assets is equal to 20 %. The current dividend per share is 32 % per face value of 1 . Compute the intrinsic value of a share of this company for an investor whose minimum required rate of return is 24%.

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