Finance Assignment | Professional Writing
May 27th, 2020
Assume Highline Company has just paid an annual dividend of $1.08. Analysts are predicting an 10.7% per year growth rate in earnings over the next five years.
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After then, Highline’s earnings are expected to grow at the current industry average of 5.6% per year. If Highline’s equity cost of capital is 8.2% per year and its dividend payout ratio remains constant, for what price does the dividend-discount model predict Highline stock shouldsell?
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