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ACME company's common stock currently sells for $95.00 a share. The firm is expected to earn $9.80 per share this year and to pay a
ACME company's common stock currently sells for $95.00 a share. The firm is expected to earn $9.80 per share this year and to pay a year-end dividend of $5.60, and it finance only with common equity. Equity investors in ACME company investors require a 10% return. Use the discounted cash flow model to solve for the growth rate of dividends, then use that information to find next year's EPS. $9.87 $9.59 $10.68 $10.42 $10.20
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