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Ronstadt Inc. generates $ 4 per share in earnings. It has 2 , 0 0 0 , 0 0 0 shares outstanding. Ronstadt is in

Ronstadt Inc. generates $4 per share in earnings. It has 2,000,000 shares outstanding. Ronstadt is in
a steady state and pays out all of its earnings as dividends. This situation is expected to last into the foreseeable future. How much would you pay for a share of Ronstadt Inc. if the required rate of return is 12%?

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