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Problem:

Far Side Corporation is expected to pay the following dividends over the next four years: $9, $7, $6, and $2. Afterward, the company pledges to maintain a constant 6 percent growth rate in dividends forever.

Required:

Question: If the required return on the stock is 15 percent, what is the current share price?

Note: Explain all calculation and formulas.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91147973

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