An analyst estimates the EPS of Rutland Corp. in the next five years to be...
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An analyst estimates the EPS of Rutland Corp. in the next five years to be $3.8, $4.3, $4.5, $4.2, and $5.4, respectively. Rutland will keep the current payout ratio of 40% in foreseeable years. The average trailing industry P/E in year 4 is expected to be 18. The cost of equity is 12%. What is the terminal value at the end of year 4?
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