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Accounting

Problem:

Stock Values. Banya, Inc., just paid a dividend of $2.20 per share on its stock. The dividends are expected to grow at a constant rate of 4 percent per year, indefinitely.

Required:

Question: If investors require an 11 percent return on Banya stock, what is the current price? What will the price be in three years? In 15 years?

Note: Provide support for your underlying principle.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91168905

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