Question
In: Finance
Assume Highline Company has just paid an annual dividend of $ 1.09$1.09. Analysts are predicting an...
Assume Highline Company has just paid an annual dividend of
$ 1.09$1.09.
Analysts are predicting an
10.3 %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
5.4 %5.4%
per year. If Highline's equity cost of capital is
7.6 %7.6%
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
$nothing.
(Round to the nearest cent.)
Solutions
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jeff jeffy answered 1 year agoRelated Solutions
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