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Twitter Inc. has 850 million shares outstanding. It expects earnings at the end of the year to be $1,280 million. The firm's equity cost of
Twitter Inc. has 850 million shares outstanding. It expects earnings at the end of the year to be $1,280 million. The firm's equity cost of capital is 12%. Twitter pays out 20% of its earnings in total: 15% paid out as dividends and 5% used to repurchase shares. If Twitter's earnings are expected to grow at a constant 3% per year, what is Twitter's share price?
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