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Company Z ' s earnings and dividends per share are expected to grow indefinitely by 4 % a year. Assume next year's dividend per share
Company Zs earnings and dividends per share are expected to grow indefinitely by a year. Assume next year's dividend per share is $ The cost of equity is If Company Z were to distribute all of its earnings, it could maintain a level dividend stream of $ a share. How much is the market actually paying per share for growth opportunities?
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