Corus Chemicals has a market capitalization of $900 million, lower than its book value of equity of
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Question:
Corus Chemicals has a market capitalization of $900 million, lower than its book value of equity of $1 billion. The company is a mature company, growing 1.5% a year and has a 9% cost of equity. If the market price is right, what return on equity is the market expecting Corus Chemicals to make in perpetuity?
- A. 6.00%
- B. 7.50%
- C. 8.10%
- D. 8.25%
- E. 9.00%
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