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6. Consider a firm with existing assets that generate an EPS of $5. If the firm does not invest except to maintain existing assets, EPS

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6. Consider a firm with existing assets that generate an EPS of $5. If the firm does not invest except to maintain existing assets, EPS is expected to remain constant at $5 a year. However, starting next year the rm has the chance to invest $3 per share a year in developing a newly discovered geothermal steam source for electricity generation. Each investment is expected to generate a permanent 2!) percent return beginning the year after each investment is made. However, the source will be fully developed by the fth year (Le. there are only five years of investment). What will he the stock price assuming investors require a 12 percent rate of return

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