Calculate the current share price

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Earnings per common share of ABC industires for the current year are expected to be $3 and to grow 10% per year for the next 4 years. At the end of the 5 years, earnings growth rate is expected to fall to 5% and continue at that rate for the foreseeable future. ABC's dividend payout ration is 40%.

If the expected return on ABC's common shares is 15%, calculate the current share price

Reference no: EM131326866

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