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Amiga Corporation has just paid an annual dividend of $1.48. Analysts are predicting a 11.6% per year growth rate in earnings over the next 4

image text in transcribed Amiga Corporation has just paid an annual dividend of $1.48. Analysts are predicting a 11.6% per year growth rate in earnings over the next 4 years. After that, Amiga's earnings are expected to grow at the current industry average of 4.6% per year. Assume that Amiga's cost of equity capital is 8.1% per year and that its dividend payout ratio will remain constant for the foreseeable future. What price does the dividend-discount model predict Amiga shares should currently sell for

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