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EQUITY MARKETS & FINANCING The following questions all relate to the valuation of the Online Shopping Guru Co. a. Online Shopping Guru Co. has a
EQUITY MARKETS & FINANCING The following questions all relate to the valuation of the Online Shopping Guru Co. a. Online Shopping Guru Co. has a dividend payout policy of 50% and 100 million shares outstanding. Online Shopping Guru Co. book value per share stood at $10. It has just now paid a dividend of $2.83 per share (DO); the dividends are expected to grow at a constant rate of 6% per year forever. If the required rate of return on the stock is 16%, what is the current value of the stock
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