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Investors require a 15% rate of return on Brooks Sisters' stock (r s = 15%). What would the estimated value of Brooks' stock be if
Investors require a 15% rate of return on Brooks Sisters' stock (rs = 15%).
What would the estimated value of Brooks' stock be if the previous dividend was D0 = $2.5 and if investors expect dividends to grow at a constant annual rate of (1) - 6%, (2) 0%, (3) 2%, or (4) 13%? Round your answers to the nearest cent.
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