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UoA Ltd just reported earnings per share (EPS) of $4.5.The share has a price earnings ratio of 50. Analysts expect that one year from now
UoA Ltd just reported earnings per share (EPS) of $4.5.The share has a price earnings ratio of 50. Analysts expect that one year from now the company will still have an EPS of $4.5, and it will pay its first dividend of $2 per share. The share has a required return of 10%.What price earnings ratio must the share have one year from now so that investors realise their expected return?
A. 245.5
B. 54.56
C. 225
D. 49.9
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