Problem $16$

Intro

A stock just paid an annual dividend of $$7.$ The dividend is expected to grow by

$5\%$ per year for the next $4$ years. In $4$ years, the P$/$E ratio is expected to be $11$

and the payout ratio to be $60\%.$

The required rate of return is $8\%.$

Part $1$

What is the value of the stock?

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