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What is the value of stock for uncle gary factory

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Reference no: EM132965266

Problem 1: In the next year, Uncle Gary's Factory expects earnings per share of $8.40. If Uncle Gary's Factory has a return on new investment of 14%, dividend payout rate is 75%, and equity cost of capital is 9%, what is the value of its stock?

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

Reference no: EM132965266

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