Question: Mulroney previously calculated a valuation for Southampton for both the constant- growth and the two- stage DDM as shown below: Constant- Growth Approach Two- Stage

Mulroney previously calculated a valuation for Southampton for both the constant- growth and the two- stage DDM as shown below:

Constant- Growth Approach Two- Stage Approach

$ 29............ $ 35.50

Using only the information provided and your answers to problems 21– 23, select the stock (EO or SHC) that Mulroney should recommend as the better value, and justify your selection.

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