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A firm is expected to produce earnings next year of $12.50 per share. It plans to reinvest 75% of its earnings at 12.0% if the

A firm is expected to produce earnings next year of $12.50 per share. It plans to reinvest 75% of its earnings at 12.0% if the cost of equity is 9.5%, what should be the value of the stock.

A. $625.00

B. $655.75

C. 705.25

D. 575.50

Please answer quickly, thank you!

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