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ABC Company has the following data:        2001           2002 2003 Book value, 12/31         $10   &nbs

ABC Company has the following data:    

   2001           2002 2003

Book value, 12/31         $10              $12              $14

Forecasted EPS    $2                $2.5 $3

Cost of capital for ABC Company is 10%.

Normal or required earnings for 2003 is

A.

$1
B.

$1.2
C.

$1.4
D.

$3
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