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Please Answer Both Sections! Jenny Banks is interested in buying the stock of Fervan, Inc., which is increasing its dividends at a constant rate of
Please Answer Both Sections!
Jenny Banks is interested in buying the stock of Fervan, Inc., which is increasing its dividends at a constant rate of 7.20 percent. Last year the firm paid a dividend of $2.65 The required rate of return is 15.90 percent. What is the current value of this stock? (Do not round intermediate calculations. Round answer to 2 decimal places, e.g. 15.20.) Current value LINK TO TEXT VIDEO: CONCEPTS IN ACTION What should be the price of the stock in year 5? (Do not round intermediate calculations. Round answer to 2 decimal places, e.g. 15.20.) Price of stock sStep by Step Solution
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