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Ace Ventura, Inc. has expected earnings of $5 per share for next year. The firm's ROE is 15% and its dividend payout ratio is 60%.

Ace Ventura, Inc. has expected earnings of $5 per share for next year. The firm's ROE is 15% and its dividend payout ratio is 60%. Assume a discount rate of 10%. What is the no-growth value component of the stock?

Question 2 options:

$25

$100

$75

$50

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