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Question 2 (1 point) Rf=1%, E[RM]=6%. Company XYZ has CAPM beta of 0.8, ROE of 8% and retains 1/3 of its earnings. Expected earnings per

Question 2 (1 point) Rf=1%, E[RM]=6%. Company XYZ has CAPM beta of 0.8, ROE of 8% and retains 1/3 of its earnings. Expected earnings per share next year are $5. What is the value of XYZ? (Round to two decimal places) Your Answer: Answer Question 3 (1 point) Should XYZ increase or decrease the rate at which it retains its earnings? Increase No change Decrease

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