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On a rainy 2018 Thanksgiving morning a company paid a dividend of $1.24 per share to each of its stockholders. The company, as well as
On a rainy 2018 Thanksgiving morning a company paid a dividend of $1.24 per share to each of its stockholders. The company, as well as the investors, expect the dividends to grow at an annual fixed rate of 5 percent, indefinitely. |
a. Stockholders require a 10 percent return on the company's stock, given its amount of risk. Calculate its current price per share. |
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