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9. Suppose the Abnormal Earnings model information for Shibu NuNu Inc. is given as follows. 2021 2022F 2023F 2024F Closing Equity 6,500 7,100 8,500 8,000

9. Suppose the Abnormal Earnings model information for Shibu NuNu Inc. is given as follows. 2021 2022F 2023F 2024F Closing Equity 6,500 7,100 8,500 8,000 Net Profit 500 700 900 1,200 Assuming the long-term growth rate of abnormal earnings is 3% and the cost of equity 5%. What is the present value of the terminal value beyond 2024? Show your workings.

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