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Value of Highline's stock? Assume Highline Company has just paid an annual dividend of $0.99. Analysts are predicting an 10.1% per year growth rate in

Value of Highline's stock?

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Assume Highline Company has just paid an annual dividend of $0.99. Analysts are predicting an 10.1% per year growth rate in earnings over the next ve years. After then, Highline's earnings are expected to grow at the current industry average of 4.7% per year. If Highline's equity cost of capital is 7.7% per year and its dividend payout ratio remains constant, for what price does the dividend-discount model predict Highline stock should sell? The value of Highline's stock is $D. (Round to the nearest cent.)

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