Earnings per common share of Ketchan Industries for the current year are expected to be $3 and grow at 10% per year over the next 5 years. After that period, earnings growth is expected to decrease to 5% annual growth and continue at that rate for the foreseeable future. ABCs dividend payout ratio is 40 percent. The expected return for ABCs shares is 15%

Required:

• Calculate the current share price and show all your work and calculations