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Sultan Services has 1 million shares outstanding. It expects earnings at the end of the year of $5.30 million. Sultan pays out 60% of
Sultan Services has 1 million shares outstanding. It expects earnings at the end of the year of $5.30 million. Sultan pays out 60% of its earnings in total - 40% paid out as dividends and 20% used to repurchase shares. If Sultan's earnings are expected to grow by 6% per year, these payout rates do not change, and Sultan's equity cost of capital is 9%, what is Sultan's share price? OA. $63.60 B. $106.00 O C. $21.20 OD. $42.40
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