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A firm is expected to have earnings of $2.50 per share in the coming year....

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Finance

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A firm is expected to have earnings of $2.50 per share in the coming year. The expected return on equity is 14%. The cost of equity is 11%. With a dividend payout ratio of 40%, the intrinsic value of the stock should be (Choose the closest answer) O A. $38.46 OB. $22.73 O C. $28.57 O D. $27.50

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