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Business, 20.04.2020 18:52 coco6687

XYZ Company has expected earnings of $3.00 for next year and usually retains 40 percent for future growth. Its dividends are expected to grow at a rate of 10 percent indefinitely. If an investor has a required rate of return of 15%, what price would he be willing to pay for XYZ stock?a. $12.50 b. $25.00 c. $30.00 d. $40.00

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