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An equity analyst has been asked to estimate the intrinsic value of the common stock of Omega Corporation, a leading manufacturer of automobile suits. Omega

An equity analyst has been asked to estimate the intrinsic value of the common stock of Omega Corporation, a leading manufacturer of automobile suits. Omega is in a mature industry, and both its earnings and dividends are expected to grow at a rate of 3 per cent annually. The growth rate of earings is steady. Which of the following is most likely to be the best model for determining the intrinsic value of an Omega share?

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