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Suppose a common stock currently pays dividends of $6.00 per share. You forecast the dividend per share to grow at 6.0% per year for the
Suppose a common stock currently pays dividends of $6.00 per share. You forecast the dividend per share to grow at 6.0% per year for the next 4 years, followed by 3.0% per year growth forever. Required (expected) stockholders rate of return is 11.0%. Calculate the intrinsic value for this common stock. Show all work.
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