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One of your companies that you are planning to sell paid a dividend today of $4.00 per share. It will pay a dividend at the
One of your companies that you are planning to sell paid a dividend today of $4.00 per share. It will pay a dividend at the end of next year and at the end of every year thereafter, but the dividend per share is expected to grow at 4% per year. The appropriate risk adjusted discount rate is 10% per year. What is the value per share of your subsidiary? Select one: a. $53.43 b. $69.33 c. $58.00 d. $52.00
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