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I Question 2 (20 marks) Trevor Car was so impressed with your work on the NPV question that you were promoted after only 1 month

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I Question 2 (20 marks) Trevor Car was so impressed with your work on the NPV question that you were promoted after only 1 month with the company. You are now Director of Finance and are tasked with evaluating business proposals. Your base salary is $194,000 per year. Your boss Trevor Cat has asked you evaluate the following Using the Dividend growth model calculate the price of the stock using the information below. The company had an EPS of $4.54 and an ROE of 25%. It currently has 100,000 common shares outstanding (the company has no preferred stock). The company paid out dividends of $126,000, (HINT use the retention rate multiplied by the return on equity to come up with the growth rate). The market requires a rate of return of 20% D (1+) D R R-3 5

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