Question
Lohn Corporation is expected to pay the following dividends over the next four years: $11, $8, $6, and $3. Afterward, the company pledges to
Lohn Corporation is expected to pay the following dividends over the next four years: $11, $8, $6, and $3. Afterward, the company pledges to maintain a constant 6 percent growth rate in dividends forever. If the required return on the stock is 13 percent, what is the current share price?
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
10th edition
978-0077511388, 78034779, 9780077511340, 77511387, 9780078034770, 77511344, 978-0077861759
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