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QUESTION 9 A company reports earnings per share in annual increments, with the next earnings date in one year. Investors have the following expectations for
QUESTION 9 A company reports earnings per share in annual increments, with the next earnings date in one year. Investors have the following expectations for this company: Expected dividends per share in one year..... S0.00 Expected price to earnings ratio in two years. 22.05 Expected revenues per share in two years.. $14.00 Expected total expenses per share including taxes) in two years.......... $11.00 Expected plowback ratio in perpetuity..... 100% Investors in this company expect to earn a rate of return of 5% APR with annual compounding. Based on this information, what share price should this company trade at today? Your final answer must be in dollars and numeric only (without the dollar sign). QUESTION 9 A company reports earnings per share in annual increments, with the next earnings date in one year. Investors have the following expectations for this company: Expected dividends per share in one year..... S0.00 Expected price to earnings ratio in two years. 22.05 Expected revenues per share in two years.. $14.00 Expected total expenses per share including taxes) in two years.......... $11.00 Expected plowback ratio in perpetuity..... 100% Investors in this company expect to earn a rate of return of 5% APR with annual compounding. Based on this information, what share price should this company trade at today? Your final answer must be in dollars and numeric only (without the dollar sign)
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