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CBT Company has 100 million shares outstanding and expects earnings

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CBT Company has 100 million shares outstanding and expects earnings at the end of the year of $350 million. CBT plans to pay 55% of its earnings in total, paying 40% as dividends and 15% to repurchase shares. CBT’s earnings are expected to grow by 6% per year and payout ratios will remain constant. If the equity cost of capital is 8%, what is CBT’s share price?

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