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Company Z-primes earnings and dividends per share are expected to grow by 2% a year. Its growth will stop after year 4. In year 5
Company Z-primes earnings and dividends per share are expected to grow by 2% a year. Its growth will stop after year 4. In year 5 and afterward, it will pay out all earnings as dividends. Assume next years dividend is $4, the cost of equity is 10%, and next years EPS is $11.
What is Z-primes stock price?
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