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Connies Cupcakes is expecting constant growth in future years. Connie is estimating that the next dividend will be $3.00 per share. After that, Connie expects
Connies Cupcakes is expecting constant growth in future years. Connie is estimating that the next dividend will be $3.00 per share. After that, Connie expects growth to be constant at 3% indefinitely. The rate expected in the marketplace for stocks such as Connies is 5.5%.
What is the value of a share of Connies Cupcakes today? _____________
What will be the value of a share in year 4? ________________
What will be the value of a share in year 5? ________________
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