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Peterson Dune Company paid a $3 dividend per share last month. The cost of capital is 5 % and the company is expected to grow
Peterson Dune Company paid a $3 dividend per share last month. The cost of capital is 5 % and the company is expected to grow at 3% per year forever. How much should be the value of the stock? If the shares are selling for $55 in the market, is it over-valued or under-valued? Should you buy it?
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