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Lite Electronics has come out with an improved product, and the world is beating a path to its door. As a result, the firm projects
Lite Electronics has come out with an improved product, and the world is beating a path to its door. As a result, the firm projects its earnings and dividend growth of per year for years. By then, other firms will have copycat technology, competition will drive down profit margins, and the sustainable earnings and dividend growth rate will fall to The most recent annual dividend was $ per share. What should be the stock price today? Assume that the stock has a beta of Treasury bills yield and the market return is
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