URGENT DUE LESS IN AN HOUR Sultan Services has 1.1 million shares outstanding. It expects...
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URGENT DUE LESS IN AN HOUR
Sultan Services has 1.1 million shares outstanding. It expects earnings at the end of the year of $5.40 million. Sultan pays out 60% of its earnings in total - 40% paid out as dividends and 20% used to repurchase shares. If Sultan's earnings are expected to grow by 6% per year, these payout rates do not change, and Sultan's equity cost of capital is 9%, what is Sultan's share price?
A. $58.91
B. $98.18
C. $39.27
D. $19.64
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