Question
Today is January 1, 2021. The EPS of a company as of December 31, 2020 was $1.50. The expected annual growth is constant at 5%.
Today is January 1, 2021. The EPS of a company as of December 31, 2020 was $1.50. The expected annual growth is constant at 5%. The annual discount rate is 4% above the annual rate of inflation. The annual rate of inflation is 3%. The expected price in January 1, 2026 is closer to:
a. $100.50
b. $99
c. $98
d. Below $98
e. Above $101
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Writing About Finance And Business
Authors: Alexandrea Geddes
First Canadian Edition
1927023866, 978-1927023860
