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Stock A has an earnings of $4 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 $4 per share at year 1. The interest rate is 20%, and the return on equity is 25%. If there is no plow-back, what is the earnings per share at year 3 (EPS3) ? Select one: a. $5.00 b. $3.00 c. $4.00 d. $2.00 e. none of the above

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