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An investor purchased stock in a company for $20 at the end of a year for which the company reported EPS of $4.00. Due to
An investor purchased stock in a company for $20 at the end of a year for which the company reported EPS of $4.00. Due to capital investment needs, the company retains 75% of earnings and intends to maintain this retention rate in the future. Return on equity (ROE) is constant at 33.3%. If the expected price of the stock in one year is $25, the expected 1-year holding period return on this stock is: (Select 1)(1pts) O 31.25% O 28.50% 0 24.00%
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