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Constant Growth Stock Valuation Investors require a 17% rate of return on Brooks Sisters' stock (r s = 17%). What would the value of Brooks's
Constant Growth Stock Valuation
Investors require a 17% rate of return on Brooks Sisters' stock (rs = 17%).
- What would the value of Brooks's stock be if the previous dividend was D0 = $1.25 and if investors expect dividends to grow at a constant compound annual rate of (1) - 4%, (2) 0%, (3) 5%, or (4) 11%? Round your answers to the nearest cent.
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