Rotary bearings has just announced that their next dividend

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Rotary Bearings has just announced that their next dividend will be $2.25. In the announcement, management has projected that earnings will grow at 10 percent per year for the next 5 years from today, then slow to 5 percent for the following 5 years and then settle at 2 percent forever. If investors require a 10 percent rate of return, what will the shares sell for in the market today?

Reference no: EM131346288

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Rotary bearings has just announced that their next dividend : Rotary Bearings has just announced that their next dividend will be $2.25. In the announcement, management has projected that earnings will grow at 10 percent per year for the next 5 years from today, then slow to 5 percent for the following 5 years ..

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What will the shares sell for in market today : Rotary Bearings has just announced that their next dividend will be $2.25. In the announcement, management has projected that earnings will grow at 10 percent per year until the end of year 5, then slow to 5 percent for the following 5 years and then..

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