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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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