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Consider the following information about company Es performance and financial position in year 2000: - 2000 net profit = 40 - Estimated growth in net
Consider the following information about company Es performance and financial position in year 2000:
- 2000 net profit = 40 - Estimated growth in net profit = 15% - Dividend payout ratio = 50% - Book value of equity as of December 31, 2000= 100 Cost of equity = 12 %
Calculate Company Es residual income (abnormal earnings) for 2001 and 2002.
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