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Reverse Engineering with the Abnormal Earnings Growth Model : Analysts forecast forward earnings of $2.11 per share and a forecast of $2.67 for two years ahead. The firm pays no dividends. The required return is 9 percent. a). What is the long-term growth rate in abnormal earnings growth (AEG) implied by a market price of $105.69? b). What is the market’s forecast of EPS for three years ahead? need a step by step calculations.

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Financial Management, Finance

Category:- Financial Management
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