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You are considering the purchase of a stock that yesterday announced EPS of $6.24. You...

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Finance

You are considering the purchase of a stock that yesterday announced EPS of $6.24. You feel that earnings will grow at 23% for the next six years. After that growth in earnings should level-off to 3% per year into the future. You require a return of 13%. Based on these assumptions, what would you pay for the stock today?

Group of answer choices

$145.51

$222.56

$304.75

$157.81

Answer & Explanation Solved by verified expert
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