Common stock

ValueVariable

growth Lawrence Industries' most recent annual dividend was

$2.042.04

per share

(D0=$2.04),

and the firm's required return is

13%.

Find the market value of Lawrence's shares when dividends are expected to grow at

8%

annually for 3 years, followed by a

5%

constant annual growth rate in years 4 to infinity.

The market value of Lawrence's shares is

$____.

(Round to the nearest cent.)

Save Homework: Chapter 7 Homework Score: 0 of 1 pt P7-15 (similar to) 5 of 8 (7 complete) HW Score: 84.09%, 6.73 of 8 pts Question Help Common stock valueVariable growth Lawrence Industries' most recent annual dividend was $2.04 per share (Do = $2.04), and the firm's required return is 13%. Find the market value of Lawrence's shares when dividends are expected to grow at 8% annually for 3 years, followed by a 5% constant annual growth rate in years 4 to infinity The market value of Lawrence's shares is $0 (Round to the nearest cent.)