Question: Solve ACCT365 In-Class Question-Chl You are analyzing a large stable company. For the year ending 12/31/22 the company reported earnings of $58,900K and book value

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ACCT365 In-Class Question-Chl You are analyzing a large stable company. For the year ending 12/31/22 the company reported earnings of $58,900K and book value at the end of 2022 was $371,700K. You expect earnings to grow at 5% a year in perpetuity, and the dividend payout ratio of 70% to continue. The company borrows at 8% and has a cost of equity of 12%. The company has 25,000K shares outstanding. What is your estimate of price per share using the dividend discount model at 12/31/22? A) $20.62 B) $21.65 C) $23.56 D) $24.74 Summer 2025

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