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Assume Highline Company has just paid an annual dividend of $ 0 . 9 3 . Analysts are predicting an 1 1 . 8 %

Assume Highline Company has just paid an annual dividend of $ 0.93. Analysts are predicting an 11.8% per year growth rate in earnings over the next five years. After then, Highline's earnings are expected to grow at the current industry average of 5.5% per year. If Highline's equity cost of capital is 7.7% per year and its dividend payout ratio remains constant, for what price does the dividend-discount model predict Highline stock should sell?

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