Question: nents Question 3 1 pts ess ls Springfield Nuclear has assets]in place which generate annual perpetual cash earnings per share (EPS) of $6. If we
nents Question 3 1 pts ess ls Springfield Nuclear has assets]in place which generate annual perpetual cash earnings per share (EPS) of $6. If we discount this perpetuity at 12%, the required rate of return for the firm, we get a stock price of $50. Yet, the current share price of Springfield Nuclear is $62. What might account for this discrepancy in price? O Growth opportunities are not reflected in the current earnings. Stockholders are expropriating wealth from the bondholders, The company is paying out all of its earnings as dividends. O Investors are not using a high enough discount rate given the risk of the stock
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