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What is the price of the stock with growth

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Reference no: EM132915051

Problem 1: Fortress of Solitude Co. expects an earnings per share of $1.95 and reinvests 35% of its earnings. Management projects a rate of return of 11% on new projects and investors expect a 6% rate of return on the stock. Given a sustainable growth rate of 3.85%, what is the price of the stock with growth?

Reference no: EM132915051

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