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If Abnormal Earnings are expected to grow at a rate of 3% per year after 2024, what would the continuing value be in 2024? The

If Abnormal Earnings are expected to grow at a rate of 3% per year after 2024, what would the continuing value be in 2024?

The current year is 2021. Lewis Hamilton, an equity analyst for Barclays, produces the following earnings and dividend estimates for Mercedes Limited for years 2022-2024. The required rate of return is 10%. The firm has no debt. EPS DPS Actual 2021 6.00 4.00 2022 7.00 4.00 Estimated 2023 4.00 4.00 2024 6.00 4.00

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