What will be next year earnings per share

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Problem 1: Spencer supply stock is currently saving for $30 a share the firm is expected to earn $8.40 per share this year and to pay your own dividends of $1.50. Investors require 10% return and if Spencer reinvest earnings and projects with an average returns equal to the stocks expected rate of return than what will be next year's earnings per share?

A. 8.72
B. 8.82
C. 8.51
D. 8.61
E. 8.40

Reference no: EM132949974

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