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Annie's Donut Shops,Inc

Question 29

Multiple Choice

Annie's Donut Shops,Inc.has expected earnings of $3.00 per share for next year.The firm's ROE is 18% and its earnings retention ratio is 60%.If the firm's market capitalization rate is 12%,what is the value of the firm excluding any growth opportunities?


A) $25.00
B) $50.00
C) $83.33
D) $208

Correct Answer:

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