What is the estimated value of the stock

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Reference no: EM131491264

Joe's Construction Co has a constant growth in earnings per share with the following earnings: 2010: $3.00, and 2015: $4.50. Dividends represent 40% of earnings. If the required rate of return is 14% what is the estimated value of the stock in 2015? (tip: figure the growth rate over the 5 years between 2010 and 2015 using a financial calculator)

Reference no: EM131491264

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