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Calculate Po for the common stock Sterling Collections Corporation. Use the Dividend Growth Model (DGM). Sterling Collections has maintained an annual dividend of $4 per
Calculate Po for the common stock Sterling Collections Corporation. Use the Dividend Growth Model (DGM). Sterling Collections has maintained an annual dividend of $4 per share for many years. The same dividend amount is expected to be paid in future years, i.e., a dividend growth rate of zero. If investors require a return of 12 percent on similar investments, determine the intrinsic value of the company's stock right now or Po.
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