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Hello this is question #26 Chapter 9 from Corporate Finance 11th edition: Stock valuation and multiple of P / U: Ramsay Corp. currently has a

Hello this is question #26 Chapter 9 from Corporate Finance 11th edition:

Stock valuation and multiple of P / U: Ramsay Corp. currently has a UPA of $ 3.10 and the P / U reference index for the company is 21. Profits are expected to grow at 6% per year.

a.- What is your estimate of the current share price?

b.- What is the price of the target shares in a year?

c.- Assuming that the company does not pay dividends, what is the implicit return on the share using the P / U valuation?

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