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Arnold, Inc. is expected to pay its first ever annual dividend one year from now, based on an expected earnings per share of $2.50 and
Arnold, Inc. is expected to pay its first ever annual dividend one year from now, based on an expected earnings per share of $2.50 and a payout ratio of 40%. Future earnings per share are expected to grow indefinitely at 4% per year, and Arnold is expected to maintain the 40% payout ratio. If Arnold's cost of equity capital is 15% at what price should Arnold's stock to sell for today?
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