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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
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 no plow-back and you like to buy stock A now and hold it for two years, what is the expected return for your investment ? Select one: O a. 10.00% Ob 20.00% O c. 25.00% O d. 40.00% O e. none of the above
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