What are the shares currently worth

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Reference no: EM132634823

Linear Technology is in the high tech industry

  • 2 years from now, the company expects the earnings per share (EPS)of 10¢ and payout of 50% of earnings as a dividend.
  • Once profitable, earnings and dividends will grow at 15% for 5years (in years 3-7)

From year 8, growth will be perpetual at 4% If the required return is 20%, what are the shares currently worth?

Reference no: EM132634823

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