If the expected return on expos common shares is 15 percent


Earnings per common share of Expo Industries for the current year are expected to be $3 and grow 10 percent per year over the next four years. At the end of the five years, earnings growth rate is expected to fall to 5 percent and continue at that rate for the foreseeable future. Expo's dividend payout ratio is 40 percent. If the expected return on Expo's common shares is 15 percent, calculate the current share price.

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Finance Basics: If the expected return on expos common shares is 15 percent
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