The book value of Astoria Company is $5,000. Total assets are $8,000. Residual income one year from now will be $20. Residual income is expected to grow at 3.5% annually, forever. Using the residual income valuation, If the required return is 20%, what is the value of Astoria? Round your answer to the nearest dollar

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The residual income valuation or RI model is a method of estimating a companys worth based on book v... View the full answer