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b) Samirah Inc. is considering a cash purchase of the stock of Getlost Manufacturing Ltd. During the year just completed, Getlost carned $6.75 per share

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b) Samirah Inc. is considering a cash purchase of the stock of Getlost Manufacturing Ltd. During the year just completed, Getlost carned $6.75 per share and paid cash dividends of $4.75 per share (D = $4.75). Getlost's earnings and growth are expected to grow at 15% per year for the next 3 years, after which they are expected to grow at 6% per year to infinity. What is the maximum price per share that Samirah Inc should pay for Getlost's stock if it has a required return of 11%? (10 marks)

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