Estimate the? firm current stock price

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Laurel Enterprises expects earnings next year of $ 3.53 per share and has a 50% retention? rate, which it plans to keep constant. Its equity cost of capital is 11%?, which is also its expected return on new investment. If its earnings are expected to grow forever at a rate of 5% per? year, what do you estimate the? firm's current stock price to? be?

The current stock price will be $?

Reference no: EM132006162

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