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. Consider a firm that has EPS of $5 at the end of the first year, a dividend-payout ratio of 30%, a discount rate of

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. Consider a firm that has EPS of $5 at the end of the first year, a dividend-payout ratio of 30%, a discount rate of 16%, and a return on retained earnings of 20%. . From the dividend growth model, the price of a share is: Div, P. a R-g Under the NPVGO model, what is the value of the firm without any future investments? EPS P. R What is the NPVGO? NPVGO= Po = =

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