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dskmvld dskmvld
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5 years ago
Jumbo Transport, an air-cargo company, expects to have earnings per share of $2.50 in the coming year. It decides to retain 20% of these earnings in order to lease new aircraft. The return on this investment will be 25%. If its equity cost of capital is 12%, what is the expected share price of Jumbo Transport?

▸ $16.67

▸ $24.75

▸ $28.57

▸ $19.23
Textbook 
Fundamentals of Corporate Finance

Fundamentals of Corporate Finance


Edition: 2nd
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Cele_1015Cele_1015
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5 years ago
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dskmvld Author
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5 years ago
Smart ... Thanks!
noodlelicker
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Yesterday
This helped my grade so much Perfect
hmonier
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2 hours ago
Thanks for your help!!
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