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Two Stage DCF Model Company Z-primes earnings and dividends per share are expected to grow by 5% a year. Its growth will stop after year

Two Stage DCF Model

Company Z-primes earnings and dividends per share are expected to grow by 5% a year. Its growth will stop after year 4. In year 5 and afterward, it will pay out all earnings as dividends. Assume next years dividend is $7, the cost of equity is 9%, and next years EPS is $14. What is Z-primes stock price?

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