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A common stock will pay a dividend of $7 next year. After that, the dividends are expected to increase indefinitely at 6% per year. If
A common stock will pay a dividend of $7 next year. After that, the dividends are expected to increase indefinitely at 6% per
year. If the discount rate is 14% what is the present value of the stream of dividend payments? Hint-just focus on what is going
on with the cash flow here (dividend). Show your work. The answer is closest to (rounded to two decimal places):
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Risk Sensitive Investment Management
Authors: Mark H A Davis, Sébastien Lleo
1st Edition
9814578037, 978-9814578035
