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Adelaide Industries Expects to Have Earnings Per Share of $3

Question 121

Multiple Choice

Adelaide Industries expects to have earnings per share of $3.20 in the coming year.Adelaide has a return on new investment of 11%.If the firm's dividend payout rate is 60%,and its equity cost of capital is 8%,what is the value of Adelaide's stock?


A) $24.00
B) $53.33
C) $40.00
D) $88.89
E) $91.43

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