What will its current price per share be

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The XYZ Company (an all-equity firm) currently has after-tax operating cash flows of $3.00 per share and pays out 5011 of its earnings in dividends.

If it expects to keep the same payout ratio, and to earn 20% on future investments forever, what will its current price per share be? Assume that the cost of capital is 15%.

Reference no: EM131247395

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