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Assume that a company is expected to have earning per share of $10 next year and pay out 50% of that as a dividend. Dividends

Assume that a company is expected to have earning per share of $10 next year and pay out 50% of that as a dividend. Dividends are also expected to grow at the constant rate of 7% over time. Investors have a required rate of return of 16%. Calculate the intrinsic value of the share using the constanr growth divident discount model

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