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Frito Dog just reported an annual earning per share of $4.50. The growth earning by 7.5% for the next 5 years after 5 years the
Frito Dog just reported an annual earning per share of $4.50. The growth earning by 7.5% for the next 5 years after 5 years the growth is 4% forever. The company maintains a dividend payout of 30% through year 1 through 4 and then raises the dividend payout to 50% in year 5 and maintains it at a constant rate thereafter. If analysts with similar risk have a cost of equity capital of 10%, what is the price its stock should sell today?
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