What do you estimate the firms current stock price to be

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Problem: Laurel Enterprises expects earnings next year of $4.43 per share and has a 45% retention rate, which it plans to keep constant. Its equity cost of capital is 10.5%, which is also its expected return on new investment. Its earnings are expected to grow forever. If its next dividend is due in one year, what do you estimate the firm's current stock price to be?

Reference no: EM133665312

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