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Aaron Inc. has 321 million shares outstanding. It expects earnings at the end of the year to be $588 million. The firm's equity cost of
Aaron Inc. has 321 million shares outstanding. It expects earnings at the end of the year to be $588 million. The firm's equity cost of capital is 11% Aaron pays out 50% of its eamings in total: 30% paid out as dividends and 20% used to repurchase shares. If Aaron's eamings are expected to grow at a constant 7% per year, what is Aaron's share price? OA. $34.35 B. $45.80 OC. $22.90 OD. $11.45
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