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The following details about Stock YZX are known. The equity cost of capital is 7%, the EPS next year will be $2.00 per share, the

The following details about Stock YZX are known. The equity cost of capital is 7%, the EPS next year will be $2.00 per share, the dividend payout rate will be 80%, and the return on new investment will be 8%. Under the DDM model, what should be the fair price for YZX?

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