What is z-prime stock price

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Reference no: EM133075220

Company Z-prime's earnings and dividends per share are expected to grow by 2% a year. Its growth will stop after year 4. In year 5 and afterward, it will pay out all earnings as dividends. Assume next year's dividend is $4, the market capitalization rate is 10% and next year's EPS is $11. What is Z-prime's stock price? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Reference no: EM133075220

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