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5. Calculate the growth rate of a stock using the Residual Earnings Method that pays: EPS= $3.20 Required return on equity is 3% BPS =

5. Calculate the growth rate of a stock using the Residual Earnings Method that pays:

EPS= $3.20

Required return on equity is 3%

BPS = $90 Price per share is $100

Part A: Show the formula, load numbers into the formula and calculate the growth rate using Reverse Engineering g.

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