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Bastille Co. has an earnings per share of $5 today. It has a return on equity of 2.8% and a required return of 3% a)

Bastille Co. has an earnings per share of $5 today. It has a return on equity of 2.8% and a required return of 3%

a) what is stock price of bastille Co. if it does not retain any earnings?

b) what is the stock price of bastille Co. if it pays out 60% of its earnings as dividends?

c)Is there a difference between stock prices in (a) and (b)? Why or why not?

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