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Microhard Inc. currently pays no dividends. The company has current earnings per share of $1.80 and an expected earnings growth rate of 4.5 percent per
Microhard Inc. currently pays no dividends. The company has current earnings per share of $1.80 and an expected earnings growth rate of 4.5 percent per year. The current book value per share is $12.95 and the required return is 11 percent. (a) What is the firms residual income for next year? (b) What should be the firms stock price today?
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