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Investors require a 15% rate of return on Brooks Sisters' stock (r s = 15%). What would the value of Brooks's stock be if the
Investors require a 15% rate of return on Brooks Sisters' stock (rs = 15%).
- What would the value of Brooks's stock be if the previous dividend was D0 = $1 and if investors expect dividends to grow at a constant compound annual rate of (1) - 2%, (2) 0%, (3) 5%, or (4) 13%? Round your answers to the nearest cent.
- $
- $
- $
- $
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