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Business, 27.02.2020 03:27 victoriapellam04

Sultan Services has 1.2 million shares outstanding. It expects earnings at the end of the year of $6.0 million. Sultan pays out 60% of its earnings in total: 40% paid out as dividends and 20% used to repurchase shares. If Sultan's earnings are expected to grow by 5% per year, these payout rates do not change, and Sultan's equity cost of capital is 10%, what is Sultan's share price?A) $60.00 B) $12.00 C) $36.00 D) $24.00

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Sultan Services has 1.2 million shares outstanding. It expects earnings at the end of the year of $6...
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