Sultan Services has 1.4 million shares outstanding. It expects earnings at the end of the year of $ 5.20 million. Sultan pays out 60% of its earnings in total - 40% paid out as dividends and 20% used to repurchase shares. If Sultan's earnings are expected to grow by 55 % per year, these payout rates do not change, and Sultan's equity cost of capital is 10%, what is Sultan's share price?
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Home » Business » Sultan Services has 1.4 million shares outstanding. It expects earnings at the end of the year of $ 5.20 million. Sultan pays out 60% of its earnings in total - 40% paid out as dividends and 20% used to repurchase shares.