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Company K's earnings and dividends per share are expected to grow indefinitely by 2% a...

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Finance

Company K's earnings and dividends per share are expected to grow indefinitely by 2% a year. Assume next year's dividend per share s $14 and next year's EPS is $2. The market capitalization rate is 12%. If Company K were to distribute all of its earnings, it could maintain a level dividend stream of $2 a share. How much is the market actually paying per share for growth apportunities? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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