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The company has 1,500,000 common shares outstanding. The company just paid a dividend of $2.50 on its common stock. Dividends are paid annually. Investors have
The company has 1,500,000 common shares outstanding. The company just paid a dividend of $2.50 on its common stock. Dividends are paid annually. Investors have a required rate of return of 18.5%. Investors expect the dividend to increase by 3.2% per year. What is the price per share? What is the value of the companys common equity?
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