This question is from IFT Mock.
I know the formula is V0 = E1/r + PVGO
IFT says E1 is the constant level of EPS or the average earnings of a no-growth company, thus it uses the E0 figure given from the question
I remember clearly from Kaplan mocks that I am supposed to use E0*(1+g) to arrive at E1 to figure out PVGO
Which one is right?
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