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The Textbook Production Co. has been hit hard by increased competition. The companys analysts predict that earnings (and dividends) will decline at a rate of
The Textbook Production Co. has been hit hard by increased competition. The companys analysts predict that earnings (and dividends) will decline at a rate of 4% annually forever. Assume that rs = 7.2% and D0 = $1.25. What will be the price of the companys stock four years from now?
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