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Hilarious George Co. maintains a rate of return of 15% on its equity. Management currently pays out all of its earnings as dividends. Hilarious George Co. anticipates year-end earnings of $2.40 per share, and investors expect a 10% rate of return on stocks facing the same risks as Hilarious George Co.
If Hilarious George Co. plowed back 40% of its earnings into the firm, at what price will their stock sell?
This document contains various important questions and their appropriate answers in the subject field of Economics.
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