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Gorilla, Inc., has recently launched a ramen / sushi fusion dish that has received an overwhelmingly positive reaction from the market. In response to this
Gorilla, Inc., has recently launched a ramensushi fusion dish that has received an overwhelmingly positive reaction from the market. In response to this success, the company is reinvesting all of its earnings to fuel further expansion. This past year, the earnings per share stood at $ and these are anticipated to increase by annually over the next five years. However, by the end of the fifth year, it's expected that competitors will introduce similar products. Consequently, analysts forecast that Gorilla will then reduce its reinvestment rate and start distributing of its earnings as dividends. Additionally, from that point onwards, the companys growth rate is projected to decelerate to a stable per annum. If Gorilla's equity cost of capital is what is the value of a share today?
Complete the table below. You can use an Excel spreadsheet and then copy and paste the sheet. Additionally, please provide detailed explanations beneath the table on how to determine the values in each cell, using either equations or descriptive methods.
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