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A share of preferred stock pays a constant dividend of $5.00 and has a required return of 10%. What is the price of one share?
A share of preferred stock pays a constant dividend of $5.00 and has a required return of 10%. What is the price of one share? Suppose that a stock just paid a dividend of $4.00 and the dividend is expected to grow at a constant rate of 5%. If the required return is 10%, what is the price of the stock? A share of stock just paid a dividend of $4, sells for $42.40, and the dividend is expected to grow 6% per year. What return does the market require for this stock? Suppose that a firm just paid a dividend of $2.00. The dividend is expected to grow 20% per year for four years and 5% per year thereafter. The required rate of return is 8%. What is the price of the stock today? What should the price be two years from today
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