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You used the AEG model to value a non-dividend paying company that has K_e of 10% and assumed the AEG after year 7 would be
You used the AEG model to value a non-dividend paying company that has K_e of 10% and assumed the AEG after year 7 would be equal to zero. In performing sensitivity analysis, you want to see the effect including a constant AEG perpetuity from year 8 onward of $0.20 per share. The incremental impact on your intrinsic valuation would be: a. $0.20 increase in the price per share b. $2.00 increase in the price per share c. $1.13 increase in the price per share d. 11.30 increase in the price per share e. $20.00 increase in the price per share
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