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Question 3 5 6 p t s Johnson & Johnson has a return on new investment of 1 0 % and a retention ratio of

Question

35

6 p t s

Johnson & Johnson has a return on new investment of

10 %

and a retention ratio of

38 % .

The required rate of return is

12 % .

The coming year's earnings per share are expected to be $

3 .

At which price will the stock sell now?

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