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7. Anderson Air, previously a no-growth firm, has thee million shares outstanding. Until now, its total earnings were constant at $15 million per year. It
7. Anderson Air, previously a no-growth firm, has thee million shares outstanding. Until now, its total earnings were constant at $15 million per year. It has no debt and pays out all earnings as dividends. Its cost of capital is 12 percent. Due to its newly appointed CEO, Anderson Air is now able to squeeze out 1 percent annual growth by plowing back 5 percent of earnings. Calculate its stock price per share. (Answer should be rounded to the nearest cent.)
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