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Business, 13.11.2019 04:31 kgonzalez200061

You expect that bean enterprises will have earnings per share of $2 for the coming year. bean plans to retain all of its earnings for the next three years. for the subsequent two years, the firm plans on retaining 50% of its earnings. it will then retain only 25% of its earnings from that point forward. retained earnings will be invested in projects with an expected return of 20% per year. if bean's equity cost of capital is 12%, then the price of a share of bean's stock is closest to:

a) $17.00

b) $10.75

c) $27.75

d) $43.50

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