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A company currently retains 40% of its earnings, which amounts to R6 per share this year. It earns an ROE of 30%. Assuming a required
A company currently retains 40% of its earnings, which amounts to R6 per share this year. It earns an ROE of 30%. Assuming a required rate of return of 16%, how much would you pay for shares in the company on the basis of the earning multiplier model?
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