Frost Corporation's recent earnings per share were $12.90.Their dividend payout ratio is 20%.Earnings are expected to grow at an average of 6% per year and the company's policy is to maintain the same payout ratio.If investors are requiring a 12% rate of return on these shares, what will they be willing to pay for one share?
A) $21.50
B) $22.75
C) $43.00
D) $45.58
Correct Answer:
Verified
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