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ABC firm has just announced an earnings per share of $5. The firm has a return on equity of 8% and a plowback ratio of
ABC firm has just announced an earnings per share of $5. The firm has a return on equity of 8% and a plowback ratio of 50%. What is the current fair price of the firm's stock if investors expect to earn a return of 12% for holding it? Round your answer to the nearest cent, and do not include the $ sign (i.e., if the answer is $21.4321, enter it as 21.43).
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