Cempany Zs eamings and dividends per shave are expected to grow indefinitely by 2% a...
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Cempany Zs eamings and dividends per shave are expected to grow indefinitely by 2% a year. Assume next year's dividend por share is $15. The cost of equily is 12%. If Company 2 were to distribute al of its earnings, it could maintain a level dividend strean of $6 a shate. How much is the market actuslly paying per shore for growth opportunities? Note: Do not round intermediate calculations. Round your answer to 2 decimal places
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