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Canberra Corp Expects to Have Earnings Per Share of $8

Question 55

Multiple Choice

Canberra Corp expects to have earnings per share of $8.40 in the coming year.Canberra has a return on new investment of 14%.If the firm's dividend payout rate is 75%,and its equity cost of capital is 9%,what is the value of Canberra's stock?


A) $114.55
B) $152.72
C) $70.00
D) $93.33
E) $129.23

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