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You have been asked to use the two-stage DDM to estimate the value per common share of Sundanci, Inc. You expect that Sundancis earnings and
You have been asked to use the two-stage DDM to estimate the value per common share of Sundanci, Inc. You expect that Sundancis earnings and dividends grow at 12% for two years and at 4% thereafter. Calculate the current value per share given that: The required return on equity = 8%; E(0) = current Earnings per share = $1.95 per share; D(0) = current dividend per share (the dividend just paid) = $.90 per share. A. $33.12 B. $27.07 C. $25.17 D. $13.32
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