Stock Valuation Universal Laser, Inc., just paid a dividend of $3.10 on its stock. The growth rate

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Stock Valuation Universal Laser, Inc., just paid a dividend of $3.10 on its stock.

The growth rate in dividends is expected to be a constant 6 percent per year, indefinitely. Investors require a 15 percent return on the stock for the first three years, a 13 percent return for the next three years, and then an 11 percent return thereafter. What is the current share price for the stock?

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Corporate Finance With Connect Access Card

ISBN: 978-1259672484

10th Edition

Authors: Stephen Ross ,Randolph Westerfield ,Jeffrey Jaffe

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