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(A)
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(B)
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(C)
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Company M's current profit before interest and taxation is $5.0 million.
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The rate of corporate tax is 25%.
It plans to continue to pay out 50% of its earnings in dividends and earnings are expected to grow by 3% each year in perpetuity.
Its cost of equity is 10%.
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B. $44.1 million
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D. $22.1 million
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