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Company A has an EPS of $6.90 today. The company is currently not paying dividends. They expect to grow the earnings by 39% for the
Company A has an EPS of $6.90 today. The company is currently not paying dividends. They expect to grow the earnings by 39% for the next 4 years. After 4 years, they will start paying 81% in dividends. What should be the price of the stock today if they expect the dividends to grow by 5 after year 4 ? The cost of capital is 9.20. NOTE: Enter the number rounding to two decimals. If your answer is $5.6786, your answer must be 5.68. Selected Answer: 1,061.208 Correct Answer: 381.483%
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