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Consider a firm that hasnt been giving out dividends and doesnt intend to. However, the company is profitable. It is expected to have earnings per
Consider a firm that hasnt been giving out dividends and doesnt intend to. However, the company is profitable. It is expected to have earnings per share of $3 by the end of this year. It is also expected, that its earnings per share will grow with time. If, the investors required rate of return is estimated to be 13% and the common stock now trades for $50, what is the implied growth rate?
A. 7% B.12.94% C.6.6% D.10%
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