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At the beginning of the year, an analyst forecasts that the earnings of Gyronetics Corp. will be $ 1 2 0 per share this year.

At the beginning of the year, an analyst forecasts that the earnings of Gyronetics Corp. will be $120 per share this year. Due to increased demand for drones, Gyronetics' main product, earnings are expected to grow at a fast pace forever, at 16% per year. However, due to the riskiness of the business, the analyst believes the appropriate discount rate for the company must also be high, equal to 35%. Gyronetics maintains a constant payout ratio of 3% per year. In the analyst's opinion, what should Gyronetics' stock price be?

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