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Business, 04.07.2020 19:01 crjjk01

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, and it is estimated to be $19.50 in one year from today and $21.00 in two years from now. - The consensus of earnings per share for next year is $3.75, and it is $4.25 in two years from now.- The residual income is forecasted to be zero in the third year and thereafter. - Based on the CAPM, the required rate of return on the firm is 12%a. $19.24b. $20.94c. $21.16d. $22.05

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Using the residual income valuation model, compute the price per share based on the following inform...

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