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1. The current book value per share for KIN Inc. is $5.00. It expects next years EPS to be $3.00. The appropriate discount rate is
1. The current book value per share for KIN Inc. is $5.00. It expects next years EPS to be $3.00. The appropriate discount rate is 12%. Calculate the share price if the earnings grow at a constant rate 5% forever.
A. $54.90
B. $39.3
C. $139.50
D. $168.30
E. $190.20
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