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ABC Corp earned $7.00 per share last year. The company plows back 35% of its earnings into projects yielding 18%. Investors require a rate of

ABC Corp earned $7.00 per share last year. The company plows back 35% of its earnings into projects yielding 18%. Investors require a rate of return of 12%. What price will they pay for the stock? What is the PVGO and trailing P/E?

Provide the following answers.

E₁=

D₁=

P₀=

PVGO =

P₀/E₀ Ratio=

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