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P7-8: Common stock value constant growth Use the constant-growth model (Gordon growth model) to find the value of each firm shown in the following table.

P7-8: Common stock value constant growth

Use the constant-growth model (Gordon growth model) to find the value of each firm shown in the following table.

FirmDividend expected next yearDividend growth rateRequired return

A $1.20 8% 13%

B 4 5 15

C 0.65 10 14

D 6 8 9

E 2.25 8 20

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