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XYZ paid a $ 2 . 6 0 dividend last year on EPS of $ 5 . 2 5 . The firm s return on

XYZ paid a $2.60 dividend last year on EPS of $5.25. The firms return on equity (ROE)is 7.5%. The required return on stocks of similar risk is 14%. What is the intrinsic valueof XYZ stock today?

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