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Home Place hotels inc is entering into a 3 year remodeling and edpansion project. The construction will have a limiting effedt on earnings during that
Home Place hotels inc is entering into a 3 year remodeling and edpansion project. The construction will have a limiting effedt on earnings during that time, but when it is complete, it should allow the company to enjoy much improved growth in earnings and dividends. Last year, the company paid a dicidend of $4.10. It expects zero growth in the next year. In years 2 and 3, 2% growth is expected, and in year 4, 15% growth. In year 5 and therafter, growth should be a constant 11% per year.
1.Whats the maximum price per share that an investor who requires 18% should pay for Home Place Hotels common stock?
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