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Up in the Air Co. just paid $1.50 dividends to its shareholders. They follow a constant payout rate policy. Due to new investments, they expect
Up in the Air Co. just paid $1.50 dividends to its shareholders. They follow a constant payout rate policy. Due to new investments, they expect they can grow their earnings by 10% over the next three years, and afterwards, earnings will grow at 3% for unforeseen future. If their appropriate cost of capital is 6%, what should be their current stock price?
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