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How much should an investor pay for a share of stock

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Reference no: EM132567965

Question - Current earnings per share information is as follows:

Continuing operations $3.75

Discontinued operations $1.05

Extraordinary items $0.45

$5.25

The interest capitalization rate is 7.5%. How much should an investor pay for a share of stock?

A. $50.00

B. $58.00

C. $64.00

D. $70.00

Reference no: EM132567965

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