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Peter Brothers inc. is expected to pay a $0.50 per share dividend at the end of the year. The dividend is expected to grow at
Peter Brothers inc. is expected to pay a $0.50 per share dividend at the end of the year. The dividend is expected to grow at a constant rate of 7% a year. The required rate of return on the stock is 15%. How much would you be willing to pay tooday if you plan to buy today and sell in 6 years?
**show work, find p6 using Dn+1/r-g, and pv= d1/(1+r)^1 + d2/ ( )^2+ ----- d6/( )6+ p6/( )^6 formulas**
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