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Welders Limited has just paid a cash dividend of $4.00 per share. The required return on the stock is 12%. If the dividend is expected

Welders Limited has just paid a cash dividend of $4.00 per share. The required return on the stock is 12%. If the dividend is expected to grow at a constant rate of 8% per annum:

a. calculate the current value of the stock

b. determine what the stock will be worth in five years.

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