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Company A has an EPS of $6.90 today. The company is currently not paying dividends. They expect to grow the earnings by 39% for the next 4 years. After 4 years, they will start paying 81% in dividends. What should be the price of the stock today if they expect the dividends to grow by 5 after year 4? The cost of capital is 9.20.
Sagot :
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