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Common stock valueVariable growth. Lawrence Industries' most recent annual dividend was $2.15 per share (D0=$2.15), and the firm's required return is 12%. Find the market
Common stock valueVariable growth. Lawrence Industries' most recent annual dividend was $2.15 per share
(D0=$2.15), and the firm's required return is 12%. Find the market value of Lawrence's shares when dividends are expected to grow at
25% annually for 3 years, followed by a 6% constant annual growth rate in years 4 to infinity.
The market value of Lawrence's shares is
$nothing.
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