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Assume Highline Company has just paid an annual dividend of $ 0.91 . Analysts are predicting an 11.2 % per year growth rate in earnings
Assume Highline Company has just paid an annual dividend of $ 0.91. Analysts are predicting an 11.2 % per year growth rate in earnings over the next five years. Afterthen, Highline's earnings are expected to grow at the current industry average of 4.8 % per year. IfHighline's equity cost of capital is 9.3 % per year and its dividend payout ratio remainsconstant, for what price does thedividend-discount model predict Highline stock shouldsell?
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