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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

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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