return on stock

B - E175.00 C - E150.00 D - E50.00 JC UM 16) Inglix Sxol expects earnings per share of $2 for the coming year (year 1). Its managers plan to retain 75% of the earnings for the next two years (years 1 and 2). They will then retain only 20% of the earnings from that point onwards. Retained earnings will be invested in projects with a return-on-equity of 15% per year. If the required stock return is 10%, then the price of the share is closest to: hec A - E39.48 B - E24.30 C - E34.89 D - E27.82 E - 236.54 Capital Budgeting - Estimating Free Cash Flows and Investment Rules 17) Using IRR (Internal Rate of Return ) can lead us to wrong pital budgeting decisions