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What price should kay jay stock to sell for today

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Kay Jay, Inc. is expected to pay its first ever annual dividend one year from now, based on an expected earnings per share of $2.50 and a payout ratio of 40%. Future earnings per share are expected to grow indefinitely at 4% per year, and Kay Jay is expected to maintain the 40% payout ratio. If Kay Jay's cost of equity capital is 15%, at what price should Kay Jay's stock to sell for today?

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Reference no: EM131835788

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