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Q2 An ordinary share of a company which engages no external financing, is selling for 50. EPS
is 7.5 of which 60 percent is paid in dividends. The company reinvests retained earnings at 10
percent [10 Marks]
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Explanation:
An ordinary share of a company which engages no external financing, is selling for 50.
EPS is 7.5 of which 60 percent is paid in dividends. The company reinvests retained earnings at 10 percent.
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