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Assume Highline Company has just paid an annual dividend of $0.94. Analysts are predicting an 11.9% 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 4.7% per year. If Highline's equity cost of capital is 8.9% 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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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92426640

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