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Campbell Soup Co. had earnings per share of $2.70 in the year ending October 31 , 1996 , and paid 50.4% of earnings as dividends.

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Campbell Soup Co. had earnings per share of $2.70 in the year ending October 31 , 1996 , and paid 50.4% of earnings as dividends. Today is November 1,1996 . Assume that an investor's discount rate is 14%. For simplicity, assume that the dividends are paid once a year and that the next dividend payment is exactly one year away. I. Value the stock assuming earnings and dividends remain constant into the future. Input the price rounded to two decimal points but without the $ sign. II. Now, value the stock as of January 11997 assuming the earnings for the year ending October 31, 1997, are going to be $3.00 per share and the earnings grow by 11% per annum and the percentage of earnings paid out as dividends remains constant. Input the price rounded to two decimal points but without the $ sign. III. Given that Campbell Soup's price is currently at $83.25 what is the growth rate you need to assume so that your valuation coincides with this price? Input the growth in percent rounded to two decimal points but without the percent sign

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