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An INV3701 student is interested in obtaining the market’s assessment of the im...
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An INV3701 student is interested in obtaining the market’s assessment of the implied growth rate in residual income and notes that the book value per share for a firm at the beginning of 2025 was R4.25, and the current market price is R70. She forecast the return on equity (ROE) for 2025 to be 11.84% . The implied residual income growth for 2025, based on the residual income model is closest to:
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