Question: Earnings per common share of ABC Industries for the current year are expected to be $3 and to grow 10% per year over the next

Earnings per common share of ABC Industries for the current year are expected to be $3 and to grow 10% per year over the next 4 years. At the end of the 5 years, earnings growth rate is expected to fall to 5% and continue at that rate for the foreseeable future. ABC's payout ratio is 40%. If the on ABC's common shares is 15%, calculate the current share price.

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