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Question Workspace Check My Work eBook Investors require an 8% rate of return on Levine Company's stock (i.e., rs= 8%). What is its value if

Question Workspace

Check My Work

  • eBook

Investors require an 8% rate of return on Levine Company's stock (i.e., rs= 8%).

  1. What is its value if the previous dividend was D0= $2.25 and investors expect dividends to grow at a constant annual rate of (1) -3%, (2) 0%, (3) 3%, or (4) 6%? Do not round intermediate calculations. Round your answers to the nearest cent.
  2. (1) $
  3. (2) $
  4. (3) $
  5. (4) $

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