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A company has two million shares outstanding. It paid a dividend of $2 during the past year, and expects that dividends will grow at 6 percent annually in the future. Stockholders require a rate of return of 13 percent. What would you expect the price of each share to be today, and what is the value of the company’s common stock? Do you use the dividend growth model?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91230695

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