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Last year JNJ had earnings per share of $7.40 and paid a dividend per share of $4.25. Assume that the required return for JNJ is
Last year JNJ had earnings per share of $7.40 and paid a dividend per share of $4.25. Assume that the required return for JNJ is 8.5 percent. If earnings and dividends are expected to grow at 6 percent, what is the implied price for a share of JNJ based on the Gordon (constant dividend growth) model
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