Question: 3 . If an equity security has $ 7 . 0 0 earnings per share [ EPS ] that are expected to remain stable in

3. If an equity security has $7.00 earnings per share [EPS] that are expected to remain stable in perpetuity, and expects to maintain a 100% payout ratio to shareholders, what is the value of the security if its required rate of return =14%?

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