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Linear Technology is in the high tech industry 2 years from now, the company expects the earnings per share (EPS)of 10c and payout of 50%
Linear Technology is in the high tech industry 2 years from now, the company expects the earnings per share (EPS)of 10c and payout of 50% of earnings as a dividend. Once profitable, earnings and dividends will grow at 15% for 5years (in years 3-7) From year 8, growth will be perpetual at 4%. If the required return is 20%, what are the shares currently worth? $0.6 $0.37 $0.81 $0.10
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