Company A is considering going public and is trying to determineits value based on its future dividend payments. Their current EPSis $5.00, and over the next 5 years they anticipate a payout ratioof 20% and ROE of 15%. During this high-growth period, their betais estimated at 1.20, with a risk-free rate of 1.0% and a marketrisk premium of 5%. At the end of the 5-year high growth period,they estimate their stable beta will be 1.05, with ROE of 12% andgrowth of 2.0%. (Risk-free rate and market risk premium will remainthe same.) Using this information, determine the per-share valuefor the company and show the calculation in details.
