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3) The current price of the shares of Charles River Mining Corporation is $50. Next year's earnings and dividends per share are 84 and $2,

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3) The current price of the shares of Charles River Mining Corporation is $50. Next year's earnings and dividends per share are 84 and $2, respectively. Investors expect perpetual growth at 8% per year. The expected rate of return demanded by investors is r= 12%. What the price would be if the company announces that the payout ratio will become 100%. Next year's payout ratio=2/4-50%

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