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Astoria has net profit margin, asset turnover and financial leverage of .1, 1 and 2,...

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Accounting

Astoria has net profit margin, asset turnover and financial leverage of .1, 1 and 2, respectively. Its stock varies 40% with the market, which has a rate of return of 12%. The bond rate is 4% and Astoria keeps 70% of its profits. If this situation will continue indefinitely, what is the market price of the company, assuming it is now paying $2 dividends?

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