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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, what is the stock price at year one (P1) ? Select one: a. $15.00 b. $25.00 c. $30.00 d. $35.00 e. none of the above Clear my choice 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 stock price at year zero (PO) ? Select one: a. $15.00 b. $25.00 c. $30.00 d. $33.00 e. none of the above Clear my choice

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