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Consider a firm that produced a Dividend of $5,000 this last year and the dividend payout ratio is expected to increase by 5% per year

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Consider a firm that produced a Dividend of $5,000 this last year and the dividend payout ratio is expected to increase by 5% per year forever. Consider that this firm has a 13% cost of equity capital. This firm has 100,000 shares of common stock outstanding 1. How much is the entire Firm's equity (market capitalization) worth? 2. What is the best estimate for Price Per Share of common stock

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