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Problem 4-17 Two-stage DCF model Company Z-prime's earnings and dividends per share are expected to grow by 5% a year. Its growth will stop after

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Problem 4-17 Two-stage DCF model Company Z-prime's earnings and dividends per share are expected to grow by 5% a year. Its growth will stop after year 4 In year 5 and afterward, it will pay out all earnings as dividends. Assume next year's dividend is $3, the market capitalization rate is 13% ond next year's EPS is $8. What is Z prime's stock price? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Stock price

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