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Question 51 - 56: Consider EXCELLENT LTD. who pays out all earnings as an annual dividend of $6 and trades at a market price of

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Question 51 - 56: Consider EXCELLENT LTD. who pays out all earnings as an annual dividend of $6 and trades at a market price of $40. Management decides to reinvest 10% of its earnings at its Return on Equity (ROE) of 18%. How would the valuation of EXCELLENT LTD. change? (a) $45.45 (b) $40.91 (c) $33.33 (d) $30.00

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