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Company Z-prime's earnings and dividends per share are expected to grow by 5% 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 5% 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 $10, the cost of equity is 8%, and next year's EPS is $15. What is Z-prime's stock price? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Stock price $ 333.33
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