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An analyst estimates the EPS of Melda Company in the next four years to be...

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Finance

An analyst estimates the EPS of Melda Company in the next four years to be
S5.4, 56.0, $6.5, and $7.2, respectively. Melda will keep the current payout ratio of 40% in
foreseeable years. The average trailing industry P/E in year 3 is expected to be 20.
Calculate the current value of Melda's stock if the cost of equity is 10%.

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