Assume a company has earnings per share of 55 and pays out 40% in dividends: The earnings growth rate for the next 3 years will be 20, At the end of the third year the company will start paying out 100% of earnings in dividends and earnings will increase at an annual rate of 5% thereafter. If a 12% rate of return is required, the value of the compony is closest to: Multiple Choice $92.90 $55.70. $10280