Assume Highline Company has just paid an annual dividend of $1.04. Analysts are predicting an 10.7%...

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Assume Highline Company has just paid an annual dividend of $1.04. Analysts are predicting an 10.7% per year growth rate in earnings over the next five years. After then, Highline's earnings are expected to grow at the current industry average of 4.7% per year. If Highline's equity cost of capital is 7.7% per year and its dividend payout ratio remains constant, for what price does the dividend-discount model predict Highline stock should sell? The value of Highline's stock is $. (Round to the nearest cent.) Assume Highline Company has just paid an annual dividend of $1.04. Analysts are predicting an 10.7% per year growth rate in earnings over the next five years. After then, Highline's earnings are expected to grow at the current industry average of 4.7% per year. If Highline's equity cost of capital is 7.7% per year and its dividend payout ratio remains constant, for what price does the dividend-discount model predict Highline stock should sell? The value of Highline's stock is $. (Round to the nearest cent.)

Answer rating: 100% (QA)

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