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2. Jones Brothers current dividend is $4.02. Six years ago, the company paid a $3.00 dividend. The companys stock is priced to earn a 12.00%
2.
Jones Brothers current dividend is $4.02. Six years ago, the company paid a $3.00
dividend. The companys stock is priced to earn a 12.00% market required rate of return.
a.
What is the current market value of a share of Jones Brothers common stock?
b.
What will be the value of a share of Jones stock in 3 years, assuming the required
return stays constant
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