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2. What is the implied stock price of a company that is expecting to make $4 per share in earnings next year, has a required

2. What is the implied stock price of a company that is expecting to make $4 per share in earnings next year, has a required rate of return of 8%, a retention ratio of 50%, and a return on equity of 13%?

a. $66.67

b. $120

c. $122.27

d. $133.33

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