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  3. i am valuing a stock using a residual income model

I am valuing a stock using a residual income model. The current book value of...

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Finance

  1. I am valuing a stock using a residual income model. The current book value of the stock is $20. The company is expected to produce $2.00 of EPS next year and the dividend per share is $1.00. If the company's cost of equity is 10%, what are the expected residual earnings for next year?

    1.

    0.90
    2.

    0.00
    3.

    1.00
    4.

    1.10

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