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You expect XYZ Co. to pay an annual dividend of $2.10 per share a year from now, and you believe that the companys earnings and

  1. You expect XYZ Co. to pay an annual dividend of $2.10 per share a year from now, and you believe that the companys earnings and dividends per share will grow at about 4% for the foreseeable future. You also believe that the companys cost of equity is about 11%. Estimate the fundamental value of a share of XYZ Co.s common stock.

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