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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 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 one? Select one: O a. $3.00 O b. $2.00 O c. $1.00 O d. $0.00 O e. none of the above

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