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Business, 31.10.2019 01:31 olivialaine31

Assume highline company has just paid an annual dividend of $ 0.91$0.91. analysts are predicting an 10.5 %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 5.3 %5.3% per year. if highline's equity cost of capital is 9.5 %9.5% 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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