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ABC will pay a $5.00 dividend in 1 year, which represents 100% of earnings. Instead, we decide to plow back 40% of the earnings at

ABC will pay a $5.00 dividend in 1 year, which represents 100% of earnings. Instead, we decide to plow back 40% of the earnings at the firm's ROE of 20%. If the expected rate of return is 12%, what is the value of the stock before and after the plowback decision?

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