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Assume Highline Company has just paid an annual dividend of $ 0.92. Analysts are predicting an 10.3 % per year growth rate in earnings over
Assume Highline Company has just paid an annual dividend of $ 0.92. Analysts are predicting an 10.3 % 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 5.3 % per year. If Highline's equity cost of capital is 9.1 % 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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