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Stock A has an earnings of $10 per share at year 1. The interest rate is 20%, and the return on equity is 25%. If

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Stock A has an earnings of $10 per share at year 1. The interest rate is 20%, and the return on equity is 25%. If there is no plow- back, how much is the amount of the earnings or profit kept in the firm for each share of the stock at year two ? Select one: a. $3.00 b. $2.00 c. $1.00 d. 0.00 e. none of the above

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