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You are hired to analyze the following company and make a recommendation. Use the dividend discount model to explain your answer. Show all your computations.

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You are hired to analyze the following company and make a recommendation. Use the dividend discount model to explain your answer. Show all your computations. [For the k use 4 decimal points). MXJ Comp Earnings growth rate: 12% Dividends growth rate: -2% Current annual dividend: $1.95 Actual EPS: $3.25 Market risk premium: 3% Risk free rate: 1.25% Beta: 1.40 Current Market Price: $20.70

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