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Michael's, Inc., just paid $2.75 to its shareholders as the annual dividend. Simultaneously, the company announced that future dividends will be increasing by 5.9
Michael's, Inc., just paid $2.75 to its shareholders as the annual dividend. Simultaneously, the company announced that future dividends will be increasing by 5.9 percent. If you require a rate of return of 10.1 percent, how much are you willing to pay today to purchase one share of the company's stock? II. Dividend Growth Model P D D D3 + + + (1+R) (1+R) (1+R) 0 =Do 00 t=1 (1+g)' (1+R) D (1+g) R-g = D (1+R)* D R-g
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