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Gold Corp. has a book value of $8.00 per share. Company is expected to earn $6.80 per share forever and pays out 40% of its

Gold Corp. has a book value of $8.00 per share. Company is expected to earn $6.80 per share forever and pays out 40% of its earnings as dividends. The required rate of return is 15%. Calculate the value of the stock using residual income model.

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