P8.16 New Millennium Company's stock sells at a P/E ratio of 21 times earnings. It is expected

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P8.16 New Millennium Company's stock sells at a P/E ratio of 21 times earnings. It is expected to pay dividends of $2 per share in each of the next five years and to generate an EPS of $5 in year 5. Using the dividends-and-earnings model and a 12% discount rate, compute the stock's justified price.

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