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Company F has $1,000 in the book value of equity at the end of year 0. F pays 60% of earnings as dividends. ROE is

Company F has $1,000 in the book value of equity at the end of year 0. F pays 60% of earnings as dividends. ROE is 12%. F is a mature firm and expects a stable growth from year 1 in perpetuity. Cost of equity is 12%. Estimate the value of equity per share at the end of year 0.  

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