Finding the Dividend Allen, Inc., is expected to pay equal dividends at the end of each of

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Finding the Dividend Allen, Inc., is expected to pay equal dividends at the end of each of the next two years. Thereafter, the dividend will grow at a constant annual rate of 4 percent forever. The current stock price is $30. What is next year’s dividend payment if the required rate of return is 12 percent?

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Corporate Finance

ISBN: 9780073105901

8th Edition

Authors: Jeffrey Jaffe, Bradford D Jordan

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