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Suppose a company has a constant market capitalization rate of 10% and a current dividend growth rate of 2%. Assume further that the current dividend
Suppose a company has a constant market capitalization rate of 10% and a current dividend growth rate of 2%. Assume further that the current dividend level is $5 per share What is the current price per share of the company. Now suppose there will be a one-time upward shift in the growth rate. If the dividend growth is expected to rise to and remain at 2.5% after five years, what is the current price per share of the company?
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