Question

Assume Highline Company has just paid an annual dividend of $ 1.06 Analysts are predicting an...

Assume Highline Company has just paid an annual dividend of

$ 1.06

Analysts are predicting an

10.7 %

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

4.7 %

per year. If​ Highline's equity cost of capital is

9.3 %

per year and its dividend payout ratio remains​ constant, for what price does the​ dividend-discount model predict Highline stock should​ sell?

The value of​ Highline's stock is

0 0
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Answer #1

$ $ $ 1.17 1.30 1.44 1.06*110.7% 1.06*110.7%*110.7% 1.06*110.7%*110.7%*110.7% 1.06*110.7%*110.7%*110.7%*110.7% 1.06*110.7%*11

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