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Company V does not currently pay a dividend. Right now (time 0), it has earnings per share of $10. These earnings will grow at 15%
Company V does not currently pay a dividend. Right now (time 0), it has earnings per share of $10. These earnings will grow at 15% per year for 5 years, at which point it will begin paying out 40% of its earnings as dividends. After that, the company is expected to grow at 3% per year forever, lithe cost of equity is 8%, what is the current stock price?
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