5.The current dividends per share per quarter of a common stock are $0.6 and dividends are expected...
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Question:
5.The current dividends per share per quarter of a common stock are $0.6 and dividends are expected to be paid quarterly and into indefinite future. The quarterly growth rate of the dividends stream is 1.0% and it is expected to stay the same into indefinite future. The required expected rate of return on the common stock is 14% per annum. Find:
a)The current price per share of the stock
b)The expected price per share at the end of the 4thquarter
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