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Which of the following is correct for a firm with earnings per share (EPS) of $2 per share and a 40 percent payout ratio? A.

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Which of the following is correct for a firm with earnings per share (EPS) of $2 per share and a 40 percent payout ratio? A. 40 percent of earnings will be plowed back into the firm. B. Dividends will equal $60 per share. C. Book value per share of equity will increase by $1.20. D. Retained earnings will be unchanged. E. None of the above. 6. A corporations has 0.205 billion of common shares outstanding, net earnings of $1.311 billion, book value of common shares of $9.724 billion, and a market capitalization of $17,200 million. what is the market value added of this corporation? A. $6,478 million B. $8.476 billion. C. $8,236 million. D. $9.894 billion. E. None of the above. The following information relates to Questions 7 - 8 . A corporation has net income of $1,311 million, after-tax interest expense of $477.4 million, debt of $7,018 million, shareholder's equity of $9,724 million, and total assets of $9,470 million. 7. Give the above information, what is the return on capital (ROC) of this corporation? (Hint: Use 3 decimal points for your calculations.) A. 14.7% B. 12.8% C. 11.4% D. 10.6% E. None of the above. Given the above information, what is the return on assets (ROA) of this corporation? (Hint: Use 3 decimal points for your calculations.) A. 11.6% B. 13.9% C. 17.8% D. 10.6% E. None of the above

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