What will the shares sell for in market today

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Reference no: EM131346284

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 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: EM131346284

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