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Smith Designs have 1.1 million shares outstanding. At the end of the current year, the company should earn approximately 5 million. The company expects to
Smith Designs have 1.1 million shares outstanding. At the end of the current year, the company should earn approximately 5 million. The company expects to pay out 60% in total; 40% as dividends and 20% to repurchase shares. Smith expects its earnings to grow by 6% per year constantly, and the company's equity cost of capital is 11%, what is the share price?
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