Question: PLEASE EXPLAIN THE PROCESS AND ANSWER Question 1 Stock A has an earnings of $6 per share at year 1. The interest rate is 20%,
PLEASE EXPLAIN THE PROCESS AND ANSWER

Question 1 Stock A has an earnings of $6 per share at year 1. The interest rate is 20%, and the return on equity is 25%. If there is no plow-back and you like to buy stock A now and hold it for three years, what is the expected return for your investment ? Answer saved Points out of 1.00 Select one: Flag question O a. 10.00% O b. 30.00% O c. 20.00% O d. 40.00% e. none of the above Clear my choice
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