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3.Calculate the following questions regarding the Dividend Discount Models(DDM) a. A company has an ROE of 10%and a plow back ratio of 20%.If the coming

3.Calculate the following questions regarding the Dividend Discount Models(DDM)

a. A company has an ROE of 10%and a plow back ratio of 20%.If the coming year's earnings are expected to be$5per share at what price will the stock sell?The market capitalization rate is 10%.(15%

b. What price do you expect the company's shares to sell for in five years?(10%)

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