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A company has assets of $ 1 0 million, all equity - financed, with a net income of $ 2 million, paying out 5 0

A company has assets of $10 million, all equity-financed, with a net income of $2 million, paying out 50% as dividends. Both net income and dividends grow at a constant rate of 4% per year. There are 500,000 shares outstanding, and the current cost of capital is 12%.
What is the current share price of the stock?

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