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Last year, your firm posted $100 million in net income. That number will grow by 10% for the next three years, and then settle: Question:

Last year, your firm posted $100 million in net income. That number will grow by 10% for the next three years, and then settle: Question: 1. Given that your equity investors demand a 11% return on equity, what is your estimate of a share of the firm's stock ($ per share)? 2. Would your answer above go up or down if the long-term growth rate increased? (Up or Down)

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