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Social Science Clinic => Business => Finance => Topic started by: karlynnae on Jul 9, 2019

Title: Jumbo Transport, an air-cargo company, expects to have earnings per share of $2.50 in the coming ...
Post by: karlynnae on Jul 9, 2019

Jumbo Transport, an air-cargo company, expects to have earnings per share of $2.50 in the coming year. It decides to retain 20% of these earnings in order to lease new aircraft. The return on this investment will be 25%. If its equity cost of capital is 12%, what is the expected share price of Jumbo Transport?
◦ $16.67
◦ $24.75
◦ $28.57
◦ $19.23

Title: Jumbo Transport, an air-cargo company, expects to have earnings per share of $2.50 in the coming ...
Post by: lorealeza77 on Jul 9, 2019

$28.57

Title: Jumbo Transport, an air-cargo company, expects to have earnings per share of $2.50 in the coming ...
Post by: karlynnae on Jul 9, 2019

Thanks

Title: Jumbo Transport, an air-cargo company, expects to have earnings per share of $2.50 in the coming ...
Post by: lorealeza77 on Jul 9, 2019

Welcome :)

Title: Re: Jumbo Transport, an air-cargo company, expects to have earnings per share of $2.50 in the coming
Post by: isaacxowens on Jul 27, 2021

thanks, cool