A Company Is Expected to Have a Value of $142,857

question 35

Multiple Choice

A company is expected to have a value of $142,857 at the start of next period and investors require a 14 percent return on equity capital.Using the assumptions of the price-earnings ratio,what would be the company's earnings for the current year?

• A) $20,000
• B) $14,286
• C) $2,800
• D) $12,500

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