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III (Common Stock) 15 points XY earns $2 per share. It reinvests 40 percent (b) of it earnings at a return of 20 percent

III (Common Stock) 15 points XY earns $2 per share. It reinvests 40 percent (b) of it earnings at a return of 20 percent (R) per year/ The required rate of return is 15% a) What is the price of the stock? b) Its premium for growth and PE ratio?

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