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Predict the price of the common stock using models provided. Is the company maximizing the wealth of the shareholder? If not, what can they do
Predict the price of the common stock using models provided. Is the company
maximizing the wealth of the shareholder? If not, what can they do achieve this
result?
a. Discuss differences of actual vs. calculated stock price.
b. If the firm has non-constant growth, then assume a constant growth rate at the
end of the fifth year.
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