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Smeal Corp.s expected earnings per share for next year (the forward earnings per share) is $3 (EPS1). The firm's ROE is 20% and its retention
Smeal Corp.s expected earnings per share for next year (the forward earnings per share) is $3 (EPS1). The firm's ROE is 20% and its retention ratio is 25%. If the firm's cost of equity is 15%, what is the firms equity value (at time 0) under the one-stage DDM? $25 $20 $22.5 $30
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