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Laurel Enterprises expects earnings next year of $3.99 per share and has a 40% retention rate,
which it plans to keep constant. lits equity cost of capital is 11% , which is also its expected
return on new investment. Its earnings are expected to grow forever at a rate of 4.4% per year. If
is next dividend is due in one year, what do you estimate the firm's current stock price to be? The
ourrent stock price will be 4 (Round to the nearest cont.)

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