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Suppose that you want to estimate Fin456 Corp.s equity value (at time 0) using the one-stage DDM. Suppose further that the firm's expected earnings per
Suppose that you want to estimate Fin456 Corp.s equity value (at time 0) using the one-stage DDM. Suppose further that the firm's expected earnings per share for next year (EPS1) is $3, the firm's ROE is 20% and its retention ratio is 25%. If the firm's cost of equity is 15%, the firms intrinsic value is
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