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Use the constant-growth model (Gordon growth model) to find the value of each firm shown in the following table. The dividend in the table is
- Use the constant-growth model (Gordon growth model) to find the value of each firm shown in the following table. The dividend in the table is the dividend that was just paid this year.
Firm | Divid | Growth | Required return |
this yr | |||
A | $4.55 | 2% | 7% |
B | $1.65 | 5.5% | 15% |
C | $5.10 | 9% | 12% |
D | $7.15 | 1% | 8% |
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