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I always leave a thumbs up for correct answers! Thanks!! Assume Highline Company...

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Finance

I always leave a thumbs up for correct answers! Thanks!! image

Assume Highline Company has just paid an annual dividend of $1.03. Analysts are predicting an 11.7% per year growth rate in earnings over the next five years. After then, Highline's earnings are expected to grow at the current industry average of 5.1% per year. If Highline's equity cost of capital is 7.8% per year and its dividend payout ratio remains constant, for what price does the dividend-discount model predict Highline stock should sell? The value of Highline's stock is $ (Round to the nearest cent.)

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