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Business, 12.12.2020 17:10 chloe081

A firm is expected to produce earnings next year of $3 per share. It plans to reinvest 25% of its earnings at 20%. If the cost of equity is 11%, what should be the value of the stock? A. $70.
B. $37.50.
C. $66.67.
D. $27.27.

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