Question
The Weatherfield Way Construction Company has common stock outstanding. The common stock paid a dividend of $3.00 per share last year, but the company expected
The Weatherfield Way Construction Company has common stock outstanding. The common stock paid a dividend of $3.00 per share last year, but the company expected that earnings and dividends will grow by 25% for the next two years before dropping to a constant 9% growth rate afterward. The required rate of return on similar common stocks is 13%. What is the per-share value of the company's common stock?
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