If abc corp expects to earn 200 per share next year and


If ABC Corp. expects to earn $2.00 per share next year and they have a policy of paying out 80% of their earnings annually. How much value is being added per share (PVGO) by the reinvestment of 20% of their earning annually if investors expect an 11% return on ABC stock and the stock is currently priced at $20 per share?

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Finance Basics: If abc corp expects to earn 200 per share next year and
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