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A common stock currently pays a dividend of $2 and is expected to pay a cash dividend every year, forever. Each year, the dividends
A common stock currently pays a dividend of $2 and is expected to pay a cash dividend every year, forever. Each year, the dividends are expected to grow at a rate of 10%. Based on an assessment of the riskiness of the common stock, the investor's required rate of return is 15%. What is the price of this common stock?
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Accounting for Decision Making and Control
Authors: Jerold Zimmerman
8th edition
78025745, 978-0078025747
