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Company A has an EPS of $4.24 today. The company is currently not paying dividends. They expect to grow the earnings by 39% for the
Company A has an EPS of $4.24 today. The company is currently not paying dividends. They expect to grow the earnings by 39% for the next 3 years. After 3 years, they will start paying 80% in dividends. What should be the price of the stock today if they expect the dividends to grow by 7 after year 3? The cost of capital is 13.07
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