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Explain steps on how they found the answer. Bench Inc just paid a dividend of $2.50 on its stock. The growth rate in dividends is
Explain steps on how they found the answer.
Bench Inc just paid a dividend of $2.50 on its stock. The growth rate in dividends is expected to be a constant 4.5% indefinitely. Investors require a return of 12% on the stock for the first three years, a return of 10% for the next three years, and then a return of 8% thereafter. What is the current share price for the stock? (15 pts)Step by Step Solution
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