Calculate the current share price

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Earnings per common share of ABC Industries for the next year are expected to be $3.4 and to grow 9% per year over the next 4 years. At the end of the 5 years, earnings growth rate is expected to fall to 6% and continue at that rate for the foreseeable future. ABC's dividend payout ratio is 45%. If the expected return on ABC's common shares is 14%, calculate the current share price

Reference no: EM132666088

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