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(4 pts) You estimate Company C will have EPS of $4.00 one year from now and EPS of $4.60 two years from now. After year

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(4 pts) You estimate Company C will have EPS of $4.00 one year from now and EPS of $4.60 two years from now. After year 2, you assume the company's earnings will grow at a constant rate of 6%. The dividend payout ratio is expected to remain constant at 25%. The appropriate discount rate for this company is 8.0%. Based on a constant growing perpetuity estimation, what is the expected selling price of Company C's stock in two years? What is the implied P/E multiple in two years based on your model? a. The stock will sell for $_in two years This implies a P/E Multiple of in two years b. What is your estimate of the intrinsic value of the stock today? Intrinsic Value today

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