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Suppose Lowes Companies Inc. just paid a dividend of $2 per share today (year 0), and will make dividend payments per share of $0.5 in
Suppose Lowes Companies Inc. just paid a dividend of $2 per share today (year 0), and will make dividend payments per share of $0.5 in year 1, $2 in year 2, $4 in year 3, and $3 in year 4. After then (in other words, after year 4) dividends will grow at 4.50% per year forever. If the firms equity cost of capital is 12.00%, what is the price per share immediately after paying todays dividend?
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