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B. You are trying to value Alpha S.A., a small, privately owned software company and...

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B. You are trying to value Alpha S.A., a small, privately owned software company and you are using the information that you have on Beta S.A. a publicly traded software company that youbelieve is fairly valued by the market given its fundamentals. You have the following information on the two companies: Assuming that both companies are in stable growth, growing 3% a year, and have the same cost of equity, estimate the fair value for the equity of Alpha S.A

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