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Stock Evaluation Athabasca River Cruise Inc.(ARCI) has expected earnings per share of $10 for the next year. It has been paying out 25% of its
Stock Evaluation Athabasca River Cruise Inc.(ARCI) has expected earnings per share of $10 for the next year. It has been paying out 25% of its earnings to shareholders as dividends and will continue to keep this practice. The market capitalization rate for ARCI is 10%, and the expected rate od return for future investment is 12% per year. Based on the constant growth rate discounted dividend model, answer the following question. What is the expected price of a share one year from now? a. $125.00 b. $272.50 c. $252.50 d $97.50 O a. Ob. Oc. Od. >
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