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Question 5. (5 Points) You have launched a successful company and are looking to sell some of your shares to finance your desired lifestyle. Your
Question 5. (5 Points) You have launched a successful company and are looking to sell some of your shares to finance your desired lifestyle. Your company's Book Equity per Share is currently $300. Your company will always generate an ROE of 15% and pays out 40% of earnings as dividends each year (and will do so forever). How much should your company be worth per share if your investors demand a rate of return of 14% on their investments
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