If a Company Has a Current Stock Price of $60

question 360

Multiple Choice

If a company has a current stock price of $60, an EPS of $2.50/share; EPS growth rate of 20% and the investors rate of return is 18%, calculate the percentage of share value arising from growth opportunities.

• A) 69%
• B) 71%
• C) 73%
• D) 75%
• E) 77%

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