Aaron Inc. has 344 million shares outstanding. It expects earnings at the end of the...
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Aaron Inc. has 344 million shares outstanding. It expects earnings at the end of the year to be $594 million. The firm's equity cost of capital is 11%. Aaron pays out 50% of its eamings in total 30% paid out as dividends and 20% used to repurchase shares. If Aaron's earnings are expected to grow at a constant 5% per year, what is Aaron's share price? A. $28.78 B. $21.59 C. $14.39 D. $720
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