=+LG 4 P7–8 Common stock value: Constant growth Use the constant-growth dividend model

(Gordon growth model) to find the value of each firm shown in the following table. X MyLab Year Dividend per share Growth rate 2018 $5.00 __________ 2019 5.15 __________ 2020 5.40 __________ 2021 5.62 __________ 2022 5.72 __________ Firm Dividend expected next year Dividend growth rate Required return A $1.20 8% 13%

B 4.00 5 15 C 0.65 10 14 D 6.00 8 9 E 2.25 8 20