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Rockebakker Industries (RI) has million shares outstanding and expects earnings at the end of this year of million. RI plans to pay out of its
Rockebakker Industries (RI) has million shares outstanding and expects earnings at the end of this year of million. RI plans to pay out of its earnings in total, paying as a dividend and using to repurchase shares. If RI's earnings are expected to grow by per year and these payout rates remain constant, determine RI's share price assuming an equity cost of capital of .
The price per share will be $
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