What price does the dividend-discount model predict


Assume Highline Company has just paid an annual dividend of $ 1.07. Analysts are predicting an 11.5 % per year growth rate in earnings over the next five years. After then, Highline's earnings are expected to grow at the current industry average of 5.2 % per year. If Highline's equity cost of capital is 7.9 % per year and its dividend payout ratio remains constant, for what price does the dividend-discount model predict Highline stock should sell?

the value of highline's stock is?

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Financial Management: What price does the dividend-discount model predict
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