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Net income = $100 000 Gross income = $300 000 Change in book value of assets = ($50 000) Cost of equity = 12 per
Net income = $100 000 Gross income = $300 000 Change in book value of assets = ($50 000) Cost of equity = 12 per cent Assume this information remains unchanged over two years. Using the discounted cash flow model, what would be the value of equity at the end of year 2?
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