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A firm's return on equity is 25%, its plowback ratio is 0.25, and its earnings per share is $2.0. What is the expected price of
A firm's return on equity is 25%, its plowback ratio is 0.25, and its earnings per share is $2.0. What is the expected price of the stock in 4 years if investors require a 17% rate of return?
Multiple Choice:
A) $19.78
B) $27.89
C) $17.78
D) $16.74
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