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calculate the company's value per share using the Residual Earnings approach. In the current year...

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Accounting

calculate the company's value per share using the Residual Earnings approach.

In the current year (Year 0), the company reported EPS of $6

Earnings are expected to grow at 6% per year for the next 5 years and Residual Earnings are expected to grow at 3% beyond that.

Dividends per share are typically 20% of EPS

Book Value per share at Year 0 is $25

The company's Required Rate of Return is 9%

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