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Another Analyst estimates that the venture will result in a 10% constant growth rate in dividends starting today that is expected to continue indefinitely into

Another Analyst estimates that the venture will result in a 10% constant growth rate in

dividends starting today that is expected to continue indefinitely into the future. Assuming this

alternative scenario is correct, if Apple Computer paid a $2.12 dividend yesterday (D0=$2.12)

and the stock is valued according to a required rate of return of 12%, what is the value of a share

of Apple Computer stock today? $116.60

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