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Stock A has an earnings of $5 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 $5 per share at year 1. The interest rate is 20%, and the return on equity is 25%. If there is a plow-back of 40%, what is the earnings per share at year two (EPS2) ? Select one: a. $5.00 b. $5.50 c. $4.52 d. $6.00 e. none of the above

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