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3. Next dividend of a corporation is expected to be 8 TL per share. The dividend is expected to grow at a constant rate of

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3. Next dividend of a corporation is expected to be 8 TL per share. The dividend is expected to grow at a constant rate of 10 % each year. If the required rate of return of the investors is 18 %, answer the followings: (25 pts) a. What is the price (intrinsic value) of the stock now? b. What would be your strategy as an investor, if the stock is traded at 102 TL in the market? Explain why. c. If the corporation's EPS is 10 TL, what part of the value is due to present assets, what part is due to growth opportunities? Calculate plowback and payout ratios

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