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Company B just paid an annual dividend of $3.80 on its common stock. During the same year, its return on equity and earnings per share
Company B just paid an annual dividend of $3.80 on its common stock. During the same year, its return on equity and earnings per share were 14% and $12.70, respectively. If the internal growth rate remains constant and investors require 17.5% of return on this stock, compute the value of the common stock of company B using dividend discount model.
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