What is the company stock price

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Katach Corp. is expected to generate earnings per share of $4.00 per share for three years, and, then, after its growth initiatives begin to pay off, it expects to generate earnings per share that begin growing by 3% forever beginning at the end of year four. The company's dividend payout ratio is always 40% of earnings per share. If equity investors expect total returns of 11%, What is the company's stock price expected to be in three years just after year three's dividend is paid?

Reference no: EM133074314

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