Extruded Elements Extruded Elements Had Net Income of $25,000,000 Last Year, and Year

question 29

Multiple Choice

Extruded Elements
Extruded Elements had Net Income of $25,000,000 last year, and $26,250,000 this year (in line with its long-term earnings growth rate) . There are 4,000,000 shares outstanding, and the firm follows a policy of paying 30% of its earnings out as dividends
-The required rate of return on Extruded's shares is 13%.What is the share price today based on the Gordon growth model?

• A) $16.00
• B) $23.44
• C) $24.63
• D) $25.88

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Potentially Responsible Party

An individual or entity that may be liable for the cleanup of a contaminated site under environmental laws.

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A component of U.S. legislation aimed at the cleanup of sites contaminated with hazardous substances and pollutants.

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Dangerous substances that pose substantial or potential threats to public health or the environment.

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