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Starling Industries (SI) has 180 million shares outstanding and expects earnings at the end of this year of $641 million. SI plans to pay out
Starling Industries (SI) has 180 million shares outstanding and expects earnings at the end of this year of $641 million. SI plans to pay out 50% of its earnings in total, paying 30% as a dividend and using 20% to repurchase shares. If SI's earnings are expected to grow by 8.5% per year and these payout rates remain constant, determine SI's share price assuming an equity cost of capital of 13.4%.
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