Question regarding the policy of paying

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If ABC Corp. expects to earn $2.00 per share next year and they have a policy of paying out 80% of their earnings annually. How much value is being added per share (PVGO) by the reinvestment of 20% of their earning annually if investors expect an 11% return on ABC stock and the stock is currently priced at $20 per share?

Reference no: EM131044432

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