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Use the following information for the next two questions. The book value per share for J&J Inc. was $4.72 at the end of 2019, and

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Use the following information for the next two questions. The book value per share for J&J Inc. was $4.72 at the end of 2019, and is expected to earn an EPS of $18 in 2020. Question 3 (10 points) If Jame expects subsequent growth in residual earnings to be at a rate of 8% per year, what is the expected return from buying this stock at a market price of $94.4? 28.31% 18.92% 22.93% 26.67%

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