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Last year, a company had earnings of $4 million with 500,000 shares of stock outstanding. Earnings are expected to remain constant into perpetuity and the
Last year, a company had earnings of $4 million with 500,000 shares of stock outstanding. Earnings are expected to remain constant into perpetuity and the required return is 15%. The company pays all earnings as dividends. If dividends are paid at the end of the year, what is the price per share of the stock?
Please solve in Excel with formulas shown so I can understand.
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