Question: You are planning to value ABC Lid. using a different equity valuation approach. You have assembled the following information. 2020 2021 Earnings per share (cents)

You are planning to value ABC Lid. using a different equity valuation approach. You have assembled the following information. 2020 2021 Earnings per share (cents) 85.0 33.7 Dividends per share (cents) 64.0 21.0 market price per share $16.2 $16.5 Assume today is the end of the financial year 2021.11 Assuming the rm will maintain its current dividend payout ratio, new investments earn a return of 15% and the cost of equity capital is 11%, what is the intrinsic value of the stock assuming perpetual growth? (Assume that the dividend of 21.0 cents has just been paid.) Select one alternative: 0 $1.56 0 $1.91 0 $2.20 0 $3.93 0 $4.15

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