Question
Delta Air Lines expects to have earnings per share of $14.00 in the coming year. It decides to retain 45% of these earnings in order
Delta Air Lines expects to have earnings per share of $14.00 in the coming year. It decides to retain 45% of these earnings in order to lease new aircraft. The return on this investment will be 15%. If its equity cost of capital is 11%, what is the expected share price of Delta Air Lines?
Group of answer choices
$140.26
$160.71
$130.00
$181.18
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Behavioral Finance And Asset Prices
Authors: David Bourghelle, Pascal Grandin, Fredj Jawadi, Philippe Rozin
1st Edition
3031244850, 978-3031244858
