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Common stock value: Constant growth Use the constant-growth dividend (Gordon growth model) to find the value of each firm shown in the following tal Firm
Common stock value: Constant growth Use the constant-growth dividend (Gordon growth model) to find the value of each firm shown in the following tal Firm Dividend expected next year Dividend growth rateeqired r ired return $1.20 4.00 0.65 6.00 2.25 8% 13% 15 14 10 20 Common stock value: Constant growth McCracken Roofing Inc. common stock paid a dividend of $1.20 per share last year. The company expects earnings and d 7-9 dends to grow at a rate of 5% per year for the foreseeable future. a. What required rate of return for this stock would result in a price per share $28? Cracken expects both earmnings and dividends to grow at an anmual, 10%, what required rate of return would result in a price per share of $282
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