Chittenden Enterprises has 620 million shares outstanding. It expects eamings at the end of the year to be $910 million. The firm's equity cost of capital is 10%. Chittenden pays out 30% of its eamings in total: 20% paid out as dividends and 10% used to repurchase shares. If Chittenden's eamings are expected to grow at a constant 3% per year, what is Chittenden's share price? O A. $12.58 O B. $6.29 OC. $1.89 O D. $3.15

Chittenden Enterprises has 620 million shares outstanding. It expects eamings at the end of the year to be $910 million. The firm's equity cost of capital is 10%. Chittenden pays out 30% of its eamings in total: 20% paid out as dividends and 10% used to repurchase shares. If Chittenden's eamings are expected to grow at a constant 3% per year, what is Chittenden's share price? O A. $12.58 O B. $6.29 OC. $1.89 O D. $3.15

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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