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The book value of Astoria Company is $5,000. Total assets are $8,000. Residual income one year from now will be $20. Residual income is expected
The book value of Astoria Company is $5,000. Total assets are $8,000. Residual income one year from now will be $20. Residual income is expected to grow at 3.5% annually, forever. Using the residual income valuation, If the required return is 20%, what is the value of Astoria? Round your answer to the nearest dollar
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Corporate Finance A Focused Approach
Authors: Michael C. Ehrhardt, Eugene F. Brigham
6th edition
1305637100, 978-1305637108
