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Company Z-prime's earnings and dividends per share are expected to grow by 4% a year. Its growth will stop after year 4 . In year
Company Z-prime's earnings and dividends per share are expected to grow by 4% a year. Its growth will stop after year 4 . In year 5 and afterward, it will pay out all earnings as dividends. Assume next year's dividend is $4, the cost of equity is 14%, and next year's EPS is \$9. What is Z-prime's stock price? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Answer is complete but not entirely correct
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