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NORDAM Group, a firm that specializes in the design and manufacturing of aircraft components, has...

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NORDAM Group, a firm that specializes in the design and manufacturing of aircraft components, has 140 million shares outstanding and analysts expect NORDAM to have earnings of $450 million this coming year (t=1). NORDAM plans to pay out 59% of its earnings in dividends and they expect to use another 11% of their earnings to repurchase shares. NORDAM's equity cost of capital is 13%. Its earnings are expected to grow at a rate of 3% per year and these payout rates are expected to remain constant. What is the value of one share of NORDAM stock today? A. $22.50 B. $18.96 C. $32.14 D. $17.31 E. $3.54 F. None of the above answers is within $0.05 of the correct

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