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Inc, has just invented a potato chip that looks and tastes like a nse to this product, Small Fry is french try Given the phenomenal market response to this product, Smalil Fry reinvesting all of its carnings to expand its operations gs were 56 per share Eamin thatpoint, other c pected to grow at a rate of 20% per year until the end of year peting products Analysts project that at the end of year 3, Small Fry will cut its investment and begin paying 80% of its earnings as dividend Its growth will also slow to a long-run rate of 5%. If Small I rys equity cost of capital is 10%, what is the value of a share today?

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SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

Home nert Page Layout Formulas Data Review View dd-Ins s Cut ta copy. E AutoSum ー E ゴWrap Text B า 프 . Ej-., Δ. : r_一 逻锂函Merge & Center. $, % , 弼,8 Paste Conditional Format CeInsert Delete Format Formatting, as Table w styles. ▼ ㆆ ▼ Sort &Find & 2 ClearFe Select Edting Format Painter Clipboard Font Alignment Number Cells CK192 CE CF CG CH CI CJ CK CL CM CN CO 174 175 YEAR 176 EPS O EPSO 1 EPS1 2 EPS2 3 EPS3 4 EPS4 AMOUNT DPS 6 7.2 8.64 10.368 10.8864 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 4HKE CAPM UTILITY, SH 8.7091 (80% OF EPS) P3D4/(ke-g) 8.7091/(0.10-0.05) 174.18 VALUE OF SHARE TODAY = VALUE OF SHARE TODAY VALUE OF SHARE TODAY = 174.18 X PVIF @ 10%, 3 YEARS 174.18 X 0.7513 130.86 beta bond c future INDEX INTL CAP BUD LEASING PV, FV, ANNUITY DIR cleanYIELD bond stru WACC RES1 ex di erences: GX38 福 130% 08:59 07-01-2019

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