If a Company Has a Current Stock Price of $78

question 130

Multiple Choice

If a company has a current stock price of $78, an EPS of $1.10/share; EPS growth rate of 20% and the investors rate of return is 11.50%, calculate the percentage of share value arising from growth opportunities.

• A) 87%
• B) 88%
• C) 89%
• D) 90%
• E) 91%

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