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Common Stock for Red River Enterprises paid a dividend of $1 per share this year, and dividends are expected to grow at the rate of
Common Stock for Red River Enterprises paid a dividend of $1 per share this year, and dividends are expected to grow at the rate of 8% per year for the foreseeable future. If an investor assumes that the risk level of Red River warrants a 12% rate of return, what would be the intrinsic value per share using the normal growth model developed by Gordon?
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