Find out the share price of the firm

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Consider a firm that has Earning Per Share of $100 at the end of 1st year, a retention ratio of 75-percent (the firm retains 75% of its earning as retained earning every year starting at the end of the 1st year), and a return on retained earnings of 16-percent. What's the share price of the firm if the discount rate of 20-percent?

Reference no: EM132703747

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