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Advertise-In-Print Ltd. currently has an earnings growth rate of -15%, i.e., their earnings are declining at the rate of 15% per year. This rate of
Advertise-In-Print Ltd. currently has an earnings growth rate of -15%, i.e., their earnings are declining at the rate of 15% per year. This rate of earnings decline is expected to stay constant henceforth. Advertise-In-Print Ltd.'s next year's dividend per share is expected to be equal to $1.00 and their cost of equity is 10%. What is the intrinsic value of one share of stock in Advertise-In-Print Ltd. equal to? $4 $10 $6.67 $20 Beangrinder Corp. has an expected rate of return on equity next year (ROE1) equal to 12% and a reinvestment rate next year (RIR1), equal to 50%. Beangrinder Corp.'s equity beta is equal to 1 and the company is expected to have an earnings per share next year (EPS1), equal to $3. The long-run risk-free rate is equal to 1% while the stock market risk premium is forecast to equal 7%. What is Beangrinder Corp.'s intrinsic equity value per share equal to: $100 $50 $75 $25
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