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Use the constant growth model (gordon growth model) to find the value of each firm shown in the following table. Firm Dividend expected next yr
Use the constant growth model (gordon growth model) to find the value of each firm shown in the following table.
Firm | Dividend expected next yr | dividend growth rate | Required Return |
A | $1.20 | 8% | 13% |
B | $4.00 | 5% | 15% |
C | $0.65 | 10% | 14% |
D | $6.00 | 8% | 9% |
E | $2.25 | 8% | 20% |
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