A company has 10 million shares outstanding. Earnings for the next year are expected to...
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A company has 10 million shares outstanding. Earnings for the next year are expected to be $100 million and the company will pay 25% of earnings out as dividends and use 30% of earnings for share repurchases.
If investors expect the earnings to grow at 3% per year and the equity cost of capital is 13%, what is the company's share price?
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