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If a company is expected to have earnings per share in the coming year of $6, retention ratio 70%, and the expected ROE is 18%.

If a company is expected to have earnings per share in the coming year of $6, retention ratio 70%, and the expected ROE is 18%. The discount rate is 14%. How much should Susan be willing to pay for one share of a stock?

a. $20.93

b. $150

c. $69.77

d. $128.57

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