Question: kindly provide me the working solution European Express, a large financial service firm, has just reported the following year-end results: Selected Reported Year-End 2014 figures

 kindly provide me the working solution European Express, a large financial

kindly provide me the working solution

European Express, a large financial service firm, has just reported the following year-end results: Selected Reported Year-End 2014 figures (in billions except per share data) Net Income 10,000 Earnings per share (EPS) 0.50 Dividends per share (DPS) 0.15 Book Value of Equity 45,000 Shares Outstanding 20,000 These results reflect European Express's first year of earnings growth following an extended period of depressed earnings caused by the financial crisis. The company is expecting this recovery in earnings growth to continue for the next ten years before transitioning (linearly) to stable growth of 5.0% per annum in fifteen years' time at which time European Express's return on equity (ROE) is expected to be stable at 10.0%. European Express's beta is expected to be stable at 1.2 throughout. The risk free rate and the market risk premium are expected to be 2.0% and 6.0%, respectively. Estimate European Express's share price using the dividend discount model (DDM). State any assumptions

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