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Problem 2 : Abnormal Earnings Growth ( AEG ) model. Assume that the required return is 1 0 % and the growth rate after 2
Problem : Abnormal Earnings Growth AEG model. Assume that the required return is and the
growth rate after is Take numbers places and align answer under time period which is
Model:
The table is dollar per share. Calculate VPS using the table.
Dividend Earnings
Cumulative Earnings
Normal Earnings
AEG
PV of AEG
PV of
Subtotal
VPS capitalized
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