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The market capitalization rate on the stock of ABN Corp. is 1 5 % . Its expected ROE is 1 2 % , and its

The market capitalization rate on the stock of ABN Corp. is

15 % .

Its expected ROE is

12 %,

and its expected EPS is $

2 .

What is the intrinsic value of the stock if the firm's plowback ratio is

70 % ?

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