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Aaron Inc. has 350 million shares outstanding. It expects earnings at the end of the year to be 619 million. The firm's equity cost of
Aaron Inc. has 350 million shares outstanding. It expects earnings at the end of the year to be 619 million. The firm's equity cost of capital is 10%. Aaron pays out 50% of its earnings in total: 30% paid out as dividends and 20% used to repurchase shares. If Aaron's earnings are expected to grow at a constant 5% per year, what is Aaron's share price?
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