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Forecast EPS and DPS of Dijon, Inc. are provided below. Forecast horizon ends in Year). Required rate of return on equity is 10 per cent
Forecast EPS and DPS of Dijon, Inc. are provided below. Forecast horizon ends in Year). Required rate of return on equity is 10 per cent and the book value of equity at year, is $5.00 per share. Determine the value of the stock at Yearo. Use at least 3 dp. (Hint: Use the AEG growth rate in Year 4 as the AEG growth rate beyond Year.|| Year EPS ($) DPS BPS (S) (5) Earnings from reinvested dividend @ 1096 Cum- Normal dividend earnings @ earnings 10% ($) Abnormal Earnings Growth (AEG) @ 10% ($) 0 5.00 1 1.40 0.10 2 0.50 0.10 3 0.70 0.20 4 0.80 0.20 Required Value Dijon stock at Yearo Forecast EPS and DPS of Dijon, Inc. are provided below. Forecast horizon ends in Year). Required rate of return on equity is 10 per cent and the book value of equity at year, is $5.00 per share. Determine the value of the stock at Yearo. Use at least 3 dp. (Hint: Use the AEG growth rate in Year 4 as the AEG growth rate beyond Year.|| Year EPS ($) DPS BPS (S) (5) Earnings from reinvested dividend @ 1096 Cum- Normal dividend earnings @ earnings 10% ($) Abnormal Earnings Growth (AEG) @ 10% ($) 0 5.00 1 1.40 0.10 2 0.50 0.10 3 0.70 0.20 4 0.80 0.20 Required Value Dijon stock at Yearo
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