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If a company has a current stock price of $ 7 8 , an EPS of $ 1 . 1 0 / share; EPS growth

If a company has a current stock price of $78, an EPS of $1.10/share; EPS growth rate of
20% and the required rate of return is 11.50%, calculate the cash cow price.
A) $8.57
B) $9.57
C) $10.57
D) $11.57
E) $12.57

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