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Adwan, Inc. (AI) stock has the following forecasted dividend-per share stream: $1.54 at the end of each of years 1 through 9 and $1.80 at the end of year 10, after which dividends are expected to grow by 2% per year, forever. Using a required return of 14%, calculate a fair price for AI’s stock today.

 

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92650839

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