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answer 13 using the formula provided. please dont use excel 13. Lohn Corporation is expected to pay the following dividends over the next four years:
answer 13 using the formula provided. please dont use excel
13. Lohn Corporation is expected to pay the following dividends over the next four years: $15,$18,$20, and $21. Afterward, the company pledges to maintain a constant 6 percent growth rate in dividends forever. If the required return on the stock is 8.75 percent, what is the current share price? Hint: P0=(1+R)1D1+(1+R)2D2+(1+R)3D3++(1+R)tDt+(1+R)tPt, where Pt=RgDt(1+g)=RgDt+1 13. Lohn Corporation is expected to pay the following dividends over the next four years: $15,$18,$20, and $21. Afterward, the company pledges to maintain a constant 6 percent growth rate in dividends forever. If the required return on the stock is 8.75 percent, what is the current share price? Hint: P0=(1+R)1D1+(1+R)2D2+(1+R)3D3++(1+R)tDt+(1+R)tPt, where Pt=RgDt(1+g)=RgDt+1 Step by Step Solution
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