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A company earning 2.50 per share sees a 10% rise the next year. New earnings per share are:
A2.75
B2.60
C2.85
D3.00
Answer & Solution
Correct answer: A. 2.75
1. Ten per cent of 2.50 is 0.25.
2. Add that to 2.50.
3. The figure is 2.75.
_Source: OpenStax Principles of Finance 2e, Chapter 7, Time Value of Money I._
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