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On a rainy 2018 Thanksgiving morning a company paid a dividend of $1.52 per share to each of its stockholders. The company, as well as
On a rainy 2018 Thanksgiving morning a company paid a dividend of $1.52 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 8 percent, indefinitely a. Stockholders require a 15 percent return on the company's stock, given its amount of risk. Calculate its current price per share. b. Since the future dividends will be growing, so will the price per share. Can you also calculate what the price per share will be in 8 years
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