Surf & Turf Hotels is a mature business, although it pays no cash dividends. Next...
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Surf & Turf Hotels is a mature business, although it pays no cash dividends. Next years earnings are forecasted at $96 million. There are 10 million outstanding shares. The company has traditionally paid out 50% of earnings by repurchases and reinvested the remaining earnings. With reinvestment, the company has generated steady growth averaging 5% per year. Assume the cost of equity is 18%
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