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The next annual dividend for XYZ is expected to be $2.40 a share. The stock has a required return (k) of 14%. The intrinsic value
- The next annual dividend for XYZ is expected to be $2.40 a share. The stock has a required return (k) of 14%. The intrinsic value of the stock today (calculated using the constant-growth DDM) is $60. If the ROE is 15%, compute the estimated earnings per share next year (i.e., in one year from today).
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