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You expect Skip to have earnings per share of 1 over the next two years. The company 'Skip' plans to retain all of its profits

You expect Skip to have earnings per share of 1 over the next two years. The company 'Skip' plans to retain all of its profits for the next two years (1 and 2). For the next three years, the company plans to retain 40% of its profits. Thereafter and forever, it will keep only 15% of its profits and distribute the rest as a dividend. Retained earnings will be invested in projects with an expected return of 10% per annum. If 'Skip' company's cost of capital is 10%, then what is its fair share price?

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