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Microsoft has an ROE of 13% and a plow-back ratio of 35%. Assume the next years earnings are expected to be $3 per share and
Microsoft has an ROE of 13% and a plow-back ratio of 35%. Assume the next years earnings are expected to be $3 per share and the market capitalization rate is 10%. a) What is the fair price of Microsoft, according to the Dividend Discount Model? b) What is the expected price in three years from now
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