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Red Carpet Co is a constant growth company that pays out 4 2 percent of its earnings as dividends and is expected to grow at

Red Carpet Co is a constant growth company that pays out 42 percent of its earnings as dividends and is expected to grow at 2.77 percent. The company has a required return of 12.42 percent. The last year's earnings were $2.11 per share. Calculate intrinsic value of the company's stock.

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