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Nicole just paid a $2.10 per share dividend this year. The dividend is expected to grow at a constant rate of 3% a year. The
Nicole just paid a $2.10 per share dividend this year. The dividend is expected to grow at a constant rate of 3% a year. The required rate of return on the stock is 10%. What is the stocks current value per share?
Continue the previous question. A well-known analyst following Nicole has just issued a report. She estimated its stock value to be $44.10 per share. What constant growth rate did the analyst use in her calculations? Use the most recent dividend and the required return from the previous question.
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