Question
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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