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Personal Finance Problem | LG 4 Common stock value: Variable growth Home Place Hotels Inc. is entering into a 3-year remodeling and expansion project. The

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Personal Finance Problem | LG 4 Common stock value: Variable growth Home Place Hotels Inc. is entering into a 3-year remodeling and expansion project. The construction will have a limiting effect on earnings during that time, but when completed, it should allow the company to enjoy much improved growth in earnings and dividends. Last year, the company paid a dividend of $3.40. It expects zero growth in the next year. In years 2 and 3, 5% growth is expected, and in year 4, 15% growth, in year 5 and thereafter, growth should be a constant 10% per year. what is the maximum price per share that an investor who requires a return of 14% should pay for Home Place Hotels common stock? P7-14

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