Question: Consider the following security, which you expect will grow rapidly for three years followed by a steady growth indefinitely. Emerson Tool and Die Company Earnings

Consider the following security, which you expect will grow rapidly for three years followed by a steady growth indefinitely.
Emerson Tool and Die Company
Earnings Per Share, 2020 $2.50
Dividend Payout Rate $0.60
Extradordinary Growth Rate 0.35
Sustainable Growth Rate 0.05
Market Capitalization Rate 0.15
Required:
Using the information in the tables above, please calculate the cash flows per period and the price of this stock.
(Use cells A5 to B9 from the given information to complete this question.)
Time Cash Flow
1
2
3
Horizon Value
Present Value (Price)

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