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You expect that Cargo Industries will have earnings of $3 per share in the coming year...

You expect that Cargo Industries will have earnings of $3 per share in the coming year and expect that they will pay out $1.50 of these earnings in the form of a dividend one year from today. Cargo’s ROE is 15%, and their cost of equity capital is 12%. The value of a share of Cargo stock is closest to:

A. $25.00 B. $29.26 C. $33.33 D. $35.83 E. $37.50

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