Assume Highline Company has just paid an annual dividend of $0.96. Analytsts are prediciting an 11.0% per year growth rate in earnings over the next five years. Afterthen Highline's earnings are expected to grow at the current industry average of 5.2% per year. If Highline's equity cost of capital is 8.5% per year and its dividend payout ratio remains constant, for what price does the divident-discount model predict Highline stock shoule sell The value of Highline's stock is $_______________ (Round to the nearest cent)

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Assume Highline Company has just paid an annual dividend of $0.96. Analytsts are prediciting an 11.0% per year growth rate in earnings over the next five years. Afterthen Highline's earnings are expected to grow at the current industry average of 5.2% per year. If Highline's equity cost of capital is 8.5% per year and its dividend payout ratio remains constant, for what price does the divident-discount model predict Highline stock shoule sell

The value of Highline's stock is $_______________

(Round to the nearest cent)

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