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Question
ART has come out with a new and improved product. As a result, the firm projects an ROE of 25%, and it will maintain a plowback ratio of 0.20. Its earnings this year will be $3 per share. Investors expect a 12% rate of return on the stock.
What price do you expect ART shares to sell for in 4 years?
A) $53.96
B) $44.95
C) $41.68
D) $39.76
Answer
This answer is hidden. It contains 52 characters.
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