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Lucy Company has a current book value of $100. Lucy will have an ROE of 15% (on trailing book value) and will pay out one-third

Lucy Company has a current book value of $100. Lucy will have an ROE of 15% (on trailing book value) and will pay out one-third of its earnings in dividends into the foreseeable future. The required return on equity is 10%. You calculate the residual income for the next two years (year 1 and year 2). What is the residual income for year 2?

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