Question: Analysts project that the Dutton Corporation will end the year with an EPS of $1.00. The firm is expected to have two periods of high

Analysts project that the Dutton Corporation will end the year with an EPS of $1.00. The firm is expected to have two periods of high growth before it slides into a stable terminal growth rate as outlined in the table below. Initially, the firm retains a high percentage of earnings, as noted by the plowback ratio, but then declines in two steps to a steady state value. Using a multi stage growth model and a required rate of return of 13%, what is the value of a share of this companys stock?

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