Assume Highline Company has just paid an annual dividend of $1.04 . Analysts are predicting an...

Assume Highline Company has just paid an annual dividend of $1.04 . Analysts are predicting an 10.3% per year growth rate in earnings over the next five years. After then, Highline's earnings are expected to grow at the current industry average of 5.3% per year. If Highline's equity cost of capital is 9.4% per year and its dividend payout ratio remains constant, for what price does the dividend-discount model predict Highline stock should sell?

The value of Highline's stock is $

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jeff jeffy answered 2 years ago

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