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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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