Question: US 10 points Company A has an EPS of 56.31 today. The company is currently not paying dividends. They expect to grow the earnings by
US 10 points Company A has an EPS of 56.31 today. The company is currently not paying dividends. They expect to grow the earnings by 32% for the next 4 years. After 4 years, they will start paying 83% in dividends. What should be the price of the stock today they expect the dividends to grow by 5 after year the cost of capital is 10.76. NOTE: Enter the number rounding to two decimals. If your answer is $5.6786, your answer must be 5.68
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