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ALR Corp. has just paid a common stock dividend of $7 per share. The dividends are expected to grow at 5% annually forever, its required rate of reutrn is 8%, and its stock is in equilibrium.

a) How much should its shares of common stock sell for today?

b) Calculate the expected dividend at Year 15.

c) Calculate Stock Price at the end of Year 15.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92724846

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