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You are going to buy stock of Imedi Co. Company's currently EPS (earning per share) is $14 $ and it is expected it will grow
You are going to buy stock of Imedi Co.
Company's currently EPS (earning per share) is $14 $ and it is expected it will grow at 2%;
Firms industry average PE ratio equals = 8
It is expected company will pay 4 dollar dividend during the next 3 years.
What is the value of stock if you plan to sell stocks after three years from now and your REQUIRED RATE OF RETURN is 12%?
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