Preparing for their initial public equity offering

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Locked-In Real Estate (LIRE) is preparing for their Initial Public Equity Offering (IPO). With its holdings consisting of rent controlled apartments, and no plans for expanding, LIRE plans to payout all of its earnings as dividends. These dividends amount to $5.00 per share, forever. If the expected rate of return is 11%, what is the stock price of LIRE?

Reference no: EM131086436

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