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You have been reading about the Modison Conputer Company (MCC), which currently retains 87 percent of its earnings ($$3 a share this year). it eams

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You have been reading about the Modison Conputer Company (MCC), which currently retains 87 percent of its earnings (\$\$3 a share this year). it eams an RoE of almost 33 percent. a. Assuming a reguired rate of return of 14 percent, how much would you pay for MOC on the basis of the earnings multiplier model? Do not tounid intermediath calcilaticns found your answer to the nearest cent. Enter zero if the obtained answer is economically meaningless. b. What would you pay for Madison Computer if its retention rate was 58 percent and its RoE was 15 percent? Do not round intermediate calculaticns. Risune your ancwer to the nearest cent. Enter zero if the obtained answer is economically meaningless

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