Question: Lemon crop currently has 5,000,000 shares. It will generate net income of $140,000,000 1 year from now and will pay out 30% of that income

Lemon crop currently has 5,000,000 shares. It will generate net income of $140,000,000 1 year from now and will pay out 30% of that income in dividends. The reinvested earnings will generate an annual return of 11%. Lemon crop will again pay out 30% of its earnings at year 2 and again will earn 11% on the new investment. At year 3 and every year thereafter, lemon will payout 90% of its earnings and will earn 8.4% on the reinvested earnings. If lemon's equity cost of capital is 8%, what is it share price?

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