Saved Question 12 (3.5 points) Listen Using the residual income valuation model, compute the...
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Saved Question 12 (3.5 points) Listen Using the residual income valuation model, compute the price per share based on the following information: - The book value per share is currently $18.00. - Your estimated residual income for next year is $3.75, and it is $4.25 in two years from now. - The residual income is forecasted to stay constant at $4.25 in the third year and thereafter. - Based on the CAPM, the required rate of return on the firm is 10% 1) $18.00 2) $40.94 3) $51.16 4) $60.05
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