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Company Average has invested capital of $20/share that generate a 20% ROI. Assuming Company A has average/ like the market risk/volatility characteristics with rf @

  1. Company Average has
    • invested capital of $20/share that generate a 20% ROI.
    • Assuming Company A has average/like the market risk/volatility characteristics with rf @ 2% and expected market return of 10%, using CAPM and expected EPS, what is the price Company Average should trade at today? Show your work -

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