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What should be the price of the stock today

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Question - Company A has an EPS of $3.05 today. The company is currently not paying dividends. They expect to grow the earnings by 33% for the next 4 years. After 4 years, they will start paying 72% in dividends. What should be the price of the stock today if they expect the dividends to grow by 7 after year 4? The cost of capital is 10.54.

Reference no: EM133075959

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