Question: ACTUARIAL solution please A stock pays annual dividends at the end of each year. The earnings per share in the year just ended were $102.

ACTUARIAL solution please ACTUARIAL solution please A stock pays annual dividends at the end of

A stock pays annual dividends at the end of each year. The earnings per share in the year just ended were $102. Earnings are assumed to grow at 7.3% per year in the future. The percentage of earnings paid out as a dividend will be 15% for the next 3 years, and 55% after that. Find the theoretical price of the stock to yield an investor 7.9% effective

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