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Please show formuals P78 Common stock value: Constant growth Use the constant-growth model (Gordon growth model) to find the value of each firm shown in
Please show formuals
P78 Common stock value: Constant growthUse the constant-growth model (Gordon growth model) to find the value of each firm shown in the following table.
Firm | Dividend expected next year | Dividend growth rate | Required return |
---|---|---|---|
A | $1.20 | 8% | 13% |
B | 4.00 | 5 | 15 |
C | 0.65 | 10 | 14 |
D | 6.00 | 8 | 9 |
E | 2.25 | 8 | 20 |
Problem 7-8 | ||||
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Firm | Expected Dividend | Dividend Growth Rate | Required Return | Value of Firm |
A | $1.20 | 8% | 13% |
|
B | $4.00 | 5% | 15% |
|
C | $0.65 | 10% | 14% |
|
D | $6.00 | 8% | 9% |
|
E | $2.25 | 8% | 20% |
|
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