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it is January 2023 and you are the CFO of Metrix Systems Corp. The firm only pays dividends. The firm is expecting earnings per share

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it is January 2023 and you are the CFO of Metrix Systems Corp. The firm only pays dividends. The firm is expecting earnings per share (EPS) of \$10 at the end of this year. If the firm does not reinvest any of its eamings it wil expect to achieve the same EPS of $10 each year in perpetuity. You are considering changing the dividend policy of the firm. Specifically, you want the firm to target a payout rate of 60% each year. The firm's return on new investment is 18% and its cost of equity capital (r ) is 12%. Calculate the share price under the proposed payout policy. Select the best one. $98.33 $166.67 $8333 $223.33 $125

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