Jumbo Transport, an air-cargo company, expects to have earnings per share of $2.50 in the...
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Jumbo Transport, an air-cargo company, expects to have earnings per share of $2.50 in the coming year. It decides to retain 20% of these earnings in order to lease new aircraft. The return on this investment will be 25%. If its equity cost of capital is 12%, what is the expected share price of Jumbo Transport? O A. $19.23 OB. $16.67 C. $28.57 OD. $31.86 E. $24.75
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