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Calculation of current value of shares of a stock under given dividend growth rate.

The Foreman Company's earnings and common stock dividends have been growing at an annual rate of 6% over the past 10 years and are expected to continue growing at this rate for the foreseeable future. The firm currently (D0) pays an annual dividend of $5 per share. Determine the current value of a share of Foreman common stock to investors with each of the following required rates of return:

1. 12%

2. 14%

3. 16%

4. 6%

5. 4%

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9159995

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