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Aaron Inc. has 337 million shares outstanding. It expects earnings at the end of the year to be $645 million. The firm's equity cost of
Aaron Inc. has 337 million shares outstanding. It expects earnings at the end of the year to be $645 million. The firm's equity cost of capital is 10%. Aaron pays out 50% of its earnings in total: 30% paid out as dividends and 20% used to repurchase shares. If Aaron's earnings are expected to grow at a constant 6% per year, what is Aaron's share price? O A. $35.88 O B. $47.84 O C. $11.96 D. $23.92
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