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Please solve without using Excel. 4. Stock Valuation: Book Match just paid an annual dividend of $1.50 per share. The company will increase its dividend
Please solve without using Excel.
4. Stock Valuation: Book Match just paid an annual dividend of $1.50 per share. The company will increase its dividend by 7 per- cent next year and will then reduce its dividend growth rate by 2 percentage points per year until it reaches the industry average of 3 percent dividend growth, after which the company will keep a con- stant growth rate forever. What is the price of this stock today given a required return of 14 percentStep by Step Solution
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