Assume Highline Company has just paid an annual dividend of $1.03. Analysts are predicting an 10.5% per year growth rate

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Assume Highline Company has just paid an annual dividend of $1.03. Analysts are predicting an 10.5% per year growth rate

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Assume Highline Company Has Just Paid An Annual Dividend Of 1 03 Analysts Are Predicting An 10 5 Per Year Growth Rate 1
Assume Highline Company Has Just Paid An Annual Dividend Of 1 03 Analysts Are Predicting An 10 5 Per Year Growth Rate 1 (39.64 KiB) Viewed 78 times
Assume Highline Company has just paid an annual dividend of $1.03. Analysts are predicting an 10.5% per year growth rate in earnings over the next five years. After then, Highline's earnings are expected to grow at the current industry average of 5.1% per year. If Highline's equity cost of capital is 7.6% per year and its dividend payout ratio remains constant, for what price does the dividend-discount model predict Highline stock should sell?
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